Tax effect

• The tax effect module is used to calculate the tax balances for use in the tax notes (income tax expense, deferred tax asset, deferred tax liability, provision for income tax, etc)
• This is purposely done on a simplified basis, including a single tax rate, and may not be suitable where complicated tax calculations are involved

 

 

---

Mode

• Auto: populates many of the gross numbers in deferred tax asset, based on the Chart of Accounts values in the report. The calculation icon on the right side identifies what allocations were used for each item
• Manual: means all gross numbers are manually entered

 

 

---

Deferred tax recognised

• If Deferred tax recognised is set to Yes, then the movements in deferred tax asset and deferred tax liability will appear in the provision for income tax

 

 

---

Renaming a class

Apart from the 'Income tax expense', which is calculated, the class name can be renamed. To rename a class:

• Click Modules > Tax effect
• Click the class name in the class list
• Click to Edit table
• Click the last row of the table
• Edit the class name

 

 

---

Statutory tax rate

To change the statutory tax rate:

• Click Reports > Options > Settings
• Change Future period statutory tax in Settings

 

 

---

Entering data for a class

To enter data for a class:

• Click Modules > Tax effect
• Click the class name in the class list
• Click to Edit table
• Enter data in the 'Gross' and 'Balance' columns
• The 'Tax effect' column will be automatically calculated using the formula 'Gross' times the 'Future period statutory tax'.

 

 

---

Returning to the class list

To return to the class list:

• Click Modules > Tax effect

 

 

---

Exporting all classes to Excel

To export all classes to Excel:

• Click Modules > Tax effect
• Click Export