Tax base

Copyright © 2025 LexisNexis
Produced by Tolley in association with Malcolm Greenbaum
Corporation Tax
Guidance

Tax base

Copyright © 2025 LexisNexis
Produced by Tolley in association with Malcolm Greenbaum
Corporation Tax
Guidance
imgtext

Rules for determining tax base

The tax base under IFRS is defined by one of four rules. These are:

  1. •

    the tax base of an asset is the amount that will be deductible for tax purposes against any taxable economic benefits that will flow to an entity when it recovers the carrying amount of the asset, or

  2. •

    if those economic benefits will not be taxable, the tax base of the asset is equal to its carrying amount (ie there is no temporary difference). See Example 3

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Malcolm Greenbaum
Malcolm Greenbaum

Director and Principal Trainer at Greenbaum Training and Consultancy Limited

Malcolm is a UK Chartered Accountant and Chartered Tax Advisor winning the John Wood Medal in the November 1995 CIOT sitting for the best paper on business taxation.He was previously Director of Finance and Taxation Programmes at BPP Professional Education and has delivered IFRS, US GAAP, UK Tax and VAT training (at all levels from an introduction to the complexities of IAS 39) to a multitude of organisations world-wide since 1992.Malcolm has particular experience in delivering bespoke training programmes to multi-nationals in the financial services, transport and energy sectors as well as delivering UK tax and VAT update programmes to accounting and law firms.He is passionate about training and his enthusiasm ensures that the participants enjoy the learning experience whilst gaining knowledge through their engagement in the sessions and through encouraging them to ask questions and discuss practical issues they may have.Malcolm also provides consultancy services to companies and accounting firms, including provision of VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions.In his spare time, Malcolm enjoys flying having gained a Private Pilot's Licence in 2014.

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  • 10 Nov 2023 08:22

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