Deferred tax considerations on T&A transfer

Deferred tax considerations on T&A transfer

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Hello,

A really general query here but what would be the deferred tax implications of a trade and asset transfer (intra group)? Would the deferred tax assets/liabilities, on fixed assets say, transfer across? 

 

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By johngroganjga
26th Jun 2017 08:07

They don't "transfer across" as such (the purchaser does not become liable for the vendor's tax liabilities) but if the purchaser takes the fixed assets into his books at the same figure as the vendor's WDV and into his CT computations at the vendor's tax WDV, then lo and behold when he comes to calculate his deferred tax liability he will get the same answer.

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