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Tax losses are where a company sustains losses in a particular year in their computation of Profits before Tax for tax purposes.
Deductible timing differences occur when, for accounting purposes, an allowable expense is deducted in arriving at Profit for the year. However, for tax purposes, the Taxman often works on the principles of when the expense is actually settled and, so far as the taxman is concerned, this is not an allowable deduction UNTIL it is actually paid.
Thus we get temporary timing differences
why a deferred tax on a revalued property is charged to revaluation reserve?
suppose say, 6m is revaluation gain. deferred tax (6m *30%)is 1.8m.
DR revaluation reserve 1.8 m
why they do that step?
thanks.
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