Page 22 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)
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INCOME TAXES
Prior year under provision - example
The accounting profit for the financial year ended 31 December 20.12
for Daisy Ltd is R500 000.
Included in the accounting profit are dividends received of R10 000 that
are not taxable and a penalty of R15 000 that is not deductible for tax
purposes.
Deasy Ltd raised a provision for current tax of R121 000 for the financial
year ended 31 December 20.11.
The final assessment issued by the SARS on 30 April 20.12 (relating to
the financial year ended 31 December 20.11), reflected income tax of
R126 000. Deasy Ltd accepted the assessment issued by the SARS as
correct.
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