Revaluation of PP&E & its tax treatment

This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.

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January 16, 2019 at 2:38 am #502168
gangsta1
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Sir why when an item of PP&Equip is revalued, the tax base remains unchanged and hence giving rise to a temporary difference?
January 21, 2019 at 8:56 pm #502935
P2-D2
Keymaster
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Hi,

Tax authorities ignore the revaluation as it is too subjective, hence the tax base remains the same. Tax authorities only like facts/evidence and that will only arise once the asset is sold in the future.

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