Deferred Tax

⚠️ **Finance warning / Avertissement finance** : informational only, not investment advice. A deferred tax position is a reported number with audit and filing consequences: recognizing an asset that future profits cannot support, or missing a liability, misstates the statements, there is a real risk of loss in any decision taken from a wrong tax position, and no output here is a promise of return. Curated by Skill Harbor: the deferred tax skill of GAJETOso/financeskills. Use it to compute or review deferred tax under IAS 12 or ASC 740, build the tax provision support, or explain an effective tax rate that does not tie to the statutory rate. The method is the balance sheet approach: for every asset and liability, the temporary difference is the carrying amount minus the tax base, taxable differences become deferred tax liabilities and deductible differences become deferred tax assets, with liabilities mirroring (a provision with a nil tax base gives an asset). It works the classic sources explicitly: accelerated capital allowances against book depreciation, provisions deductible when paid, revaluation surpluses through other comprehensive income, unused tax losses behind a recognition test, right-of-use assets and lease liabilities, and unrealized intragroup profits at the buyer rate. The exceptions are stated plainly (initial recognition, goodwill, controlled investments in subsidiaries), and the recognition test is the heart of the skill: an asset is recognized only to the extent future taxable profit is probable, evidenced by reversing liabilities in the same jurisdiction and period, forecasts that need convincing evidence after recent losses, and tax planning opportunities, with the US GAAP valuation allowance under the more likely than not standard. The deliverable is a deferred tax schedule and memo: the per-item schedule with carrying amount, tax base, difference, rate and closing balances with movements split across profit or loss, other comprehensive income and equity, the recognition memo for loss assets, the statutory to effective rate bridge (an unexplained residual above 0.5 percent means an error hunt), and the entries, with rate changes remeasured across all balances and traced back to where each difference was first booked. From the GAJETOso/financeskills repository (MIT). Honest caveats: tax positions feed official filings, so have the schedule and the memo checked by a qualified professional before any official use; the enacted rates, tax bases, loss expiry profile and local utilization rules are yours to supply and to verify for your jurisdiction, and the shipped calculate.py script should build the schedule instead of mental arithmetic. Skill Harbor never reviews the code, review it yourself before use.