IAS12 Income tax

• IAS 12 notes to Accounting policies

  
  

  Taxation

  
  

  The tax currently payable is based on the taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit or loss because of items of income and expense that are taxable or deductible in other years and items that are never taxable or deductible.
• Accounting profit AKA the profit for the period is profit or loss of the period before deducting expense
• Current tax: according to IAS12, "income tax payable (recoverable) in respect of taxable profit (loss) of the period
• Accounting profit is what companies requires to prepare in their financial statement in accordance to IFRS standard
• Premanent different: exempt income, Non-deducatble expense
• Tax instalment for big company (x>50,000), instalment payment at 14th day of 7th, 10th, 13th, 16th month