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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.
