Accountancy Forum

Hello All!

I was doing this tax question from my text book and I came across this problem where they asked us to explain "TAX BASE".

I have no idea, what tax base is..

Annexed to that, does it have something to do with "Assessable Income"?

If Assessable Income and Tax Base are two different things then what is their difference??

Any help in this regard would be really appreciated..

Cheers and stay safe.

Seiko Khan

Well tax base is a concept related to deferred taxation. It is the amount of any asset or expense that is assessed in accordance with the taxation laws.
For example if u purchase an asset on which no tax depreciation is allowed then the tax base of the asset is nill....
I think if u r not in module E u dont need any details. if otherwise first read IAS 12 and then further proceed.