Deferred tax PGDA671

Deferred tax relates to the future tax consequences that will arise from the future recovery of assets and the settlement of liabilities.

• True

• False

VAT is included within the scope of IAS 12.

• True

• False

The definition of the tax base of an asset is the amount that will be deductible for tax purposes

• True

• False

The tax base of debtors is 0

• True

• False

Income received in advance is an exception to the definition of the tax base of a liability.

• True

• False

A taxable temporary difference results in a deferred tax liability.

• True

• False

The sale intention for investment property can never be rebutted.

• True

• False

The tax base of a right-of-use asset will always be 0

• True

• False

Deferred tax should be discounted and split between its non-current and current portion.

• True

• False

Revalued asset + No wear and tear + use intention = Full deferred tax balance is exempt

• True

• False