Page 20 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)
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INCOME TAXES
Exempt Differences - example
The company has profit before tax of R10 000. Included in the profit are dividends
received of R1 000 and fines paid of R200. There are no temporary differences.
The tax rate is 28%.
Required: Calculate the current tax expense and deferred tax expense for the year.
Solution
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