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Stephen Widberg.
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Noah098
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sir can we say that tax base of an item will always be zero if tax is charged on cash received basis and tax is credited on a cash paid basis.
In simple words whether receipts or payments, cash basis is used for tax purposes, then tax base will ALWAYS be zero?
Stephen Widberg
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Don’t sue me over it but it looks like a reasonable rule of thumb.
Normally tax base is zero – main exception is writing down PPE where accounting depreciation is different to tax allowances.
No particular marks for the word ‘tax base’ – what the examiner is looking for is the ‘temporary difference’.
Noah098
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