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Hello Mike,thank you very much for answering by former question.
Mike could you please explain me how to calculate the tax base when a property is revalued and the provision to deferred tax when the asset and the tax written down value is given .
Thank youThe tax base is the value of the asset that will be allowed against tax through the coming years
That amount will be used as the basis for the calculation of capital allowances (F6 topic)
The provision for deferred tax is calculated by applying the tax rate to the difference between the two values (carrying value and tax base)
Look at section 8 of the mini exercises (taxation) towards the back end of the course notes (around page 212 ish)
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