Tax disclosures

By Tolley in association with Nick Watson
Corporation_tax_img

The following Corporation Tax guidance note by Tolley in association with Nick Watson provides comprehensive and up to date tax information covering:

  • Tax disclosures
  • Required disclosures

IAS 12 imposes a significant number of tax disclosures on a company. These are set out in IAS 12, paras 79 to 88.

The guidance note is split into two parts. Below is a list of all of the disclosures required by IAS 12 and separately there is an example tax note with commentary (see the guidance note IFRS - example tax note).

The following list is also available as a template in Word format, Checklist - IFRS tax disclosure requirements

Required disclosures
IAS 12.79 and IAS 12.80

The following should be separately disclosed:

  • current tax expense (income)
  • any adjustments recognised in the period for current tax of prior periods
  • the deferred tax expense (income) relating to the origination and reversal of timing differences
  • the amount of deferred tax expense (income) relating to changes in tax rates or the imposition of new taxes
  • the amount of benefit arising from a previously unrecognised tax loss, tax credit or temporary difference of a prior period that is used to reduce deferred tax expense
  • deferred tax expense arising from the write down or reversal of a previous write down of a deferred tax asset
  • amount of tax expense (income) relating to those changes in accounting policies and errors that are included in the profit or loss in accordance with IAS 8 because they cannot be accounted for retrospectively
IAS 12.81

Each of the following should be disclosed separately:

    More on Deferred tax and tax disclosures under IFRS: