Income Tax Flashcards
1
Q
Examples of Permanent Differences
Why are they permanent differences?
A
- Non-taxable income
- Non-deductible expense
- Income subj to Final Tax
Because they will never be included in ITR
2
Q
AI > TI
TTD or DTD?
A
Taxable Temporary Difference
3
Q
Asset CA > Tax Base
TTD or DTD?
A
Taxable Temporary Difference
4
Q
Liability CA > Tax Base
TTD or DTD?
A
Deductible Temporary Difference
5
Q
NOLCO
TTD or DTD?
A
Deductible Temporary Difference
6
Q
Revaluation Surplus
TTD or DTD?
A
Taxable Temporary Difference
7
Q
In your mind, create the formula template for Accounting for Income Tax
A
refer to notes
8
Q
Formula for Deferred Tax Expense
A
DTL less DTA
9
Q
Formula for TITE
A
CTE plus DTE
10
Q
Can DTL and DTA be offset?
DTL and DTA are non-current.
A
NO (unless same taxing authority or has legal right to offset)
