S decided to record the purchase made of 2nd April 200X in tax year ending 31st March 200X . The authority will likely to classify this as tax evasion
Sir can you please explain how is it tax evasion
Ask the Tutor ACCA BT
Tax
5y ago#1The reclassification of the expenditure from y/e 31/3/200Y to 31/3/200X will lower the profits for y/e 31/3/200X and also lower the tax for that year. Next year's profit and tax would be higher but there are advantages in deferring tax.
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