Assalam-o-Alaikum
I wanted to know that do we recognize deferred tax if the economic benefit of an asset is taxable but reduction are not allowed for it (i.e. its tax base is zero)
WAA.
Dear ASIF
We shall not recognize deferred tax liability in this case, be cause deferred tax is calculated only on temporary differences which has to be reversed in the future.
in this case even though tax base is nil and economic benifits are taxable but it is perminent difference so no DTA shall be recognised.
thanx
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Asif Ali Soomro</i>
<br />Assalam-o-Alaikum
I wanted to know that do we recognize deferred tax if the economic benefit of an asset is taxable but reduction are not allowed for it (i.e. its tax base is zero)
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">