Preparing tax compuation for financial statement.
An asset was sold and a P&L income of 50 K was booked.
Now I know I need to deduct this income in the tax computation. (A seperate Capital gains computation should be made in the tax return).
However, should it be deducted as a permanent or as a temporary?
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You ask a lot of questions about tax and quote some huge numbers. If you are managing your own tax affairs on the basis of free advice that you get from contributors on here, I can’t help thinking you are potentially either storing up problems for yourself/your business/your employer’s business. Also, you are possibly missing opportunities to manage the affairs of the business more efficiently.
One of your previous questions said “We spent 50 K on professional fees - tax advisory” and another refers to “our auditor” so it appears you have a relationship with professional advisors. They will know your business and are surely the ones best placed to give advice. Is there some reason why you don’t wish to use them? If there has been a breakdown in your relationship, it would definitely be worthwhile appointing a new firm to help you.
A profit on sale of a chargeable asset goes nowhere near your deferred tax computation. The only thing to watch to ensure your tax reconciliation balances is to deduct as a permanent difference any indexation allowance in the capital gains calculation.