IAS 12 income taxes

Hi Mike,

I have a question related to the calculation of tax base of assets and liabilties.

1. The rule for tax base of a liability is its carrying amount less tax deductible amount.
In a book, I read that the carrying amount of bad debts provision is $12,000 and its tax base is nil.
How come the tax base is nil? They would’nt be used for tax purpose hence the tax deductible amount is zero which would give the tax base as $12000.

2. interest recievable is $100 – future economic benifits will be taxable hence tax deductible amount would be nil which will make tax base nil
How did the tax base become nil? The rule for tax base is asset’s deductible amount. In this case would’nt it be $100 as tax base.

3. Current liabilities include accrued fines and penalties with a carrying amount of RM100. Fines and penalties are not deductible for tax purposes. The tax base of the accrued fines and penalties is RM100
How is when its not even used for tax purpose, the tax base is as same as the carrying amount?

I find this deferred taxes a bit confusing. Would you be able to help me on this? Thank you so much!