- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
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?
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’.