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Completing The National Actual Tax Process

Before you begin your annual tax charge process, Tax Provision automates the population of profit before tax (pre-tax income) from the income statement of the entity. The Tax Administrator imports the chart of accounts data, which includes profit before tax by legal entity. The chart of accounts is used to transfer the entity’s profit before tax into the Current Tax Charge input app and report.

Tax Provision then uses the imported chart of accounts to automate the permanent and temporary book-tax differences by legal entity.

The following table outlines the IAS 12 national actual tax process in Tax Provision:

Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculations interface once the lock on the owner is released.

S.no Step Input apps/reports to use
1

Complete the pre-provision process.
2

Update and review fixed assets.
3

For Canadian entities, update and review the asset depreciation schedules.
4

Update and review the current tax charge: income statement, equity, and OCI.
5

Input adjustments in the reporting currency for any translation differences that may exist between Tax Provision and the general ledger or consolidation system.
6

Update acquisition information.
7

Update and review the gross temporary differences rollforward activity using the Temporary Difference method input apps and reports or the Balance Sheet method input apps and reports.

For the Temporary Difference method:

For the Balance Sheet method:
8

Identify the portion of ending cumulative temporary differences that is unrecognised, short-term recognised, and long-term recognised.
9

Review the deferred tax account reports.
10

Review the deferred tax recognised and not recognised.
11

Complete the regional provision process if applicable.
12

Review the rate reconciliation and total tax charge.
13

Review the reconciliation reports.
  • Statutory Total Tax Charge Reconciliation report (NA1504)
  • Consolidated Total Tax Charge Reconciliation report (NA1505)
14

Update and review the tax account rollforward.
15

Update and review the current tax account.
16

Input any top-side reporting currency adjustments for the current tax charge and total tax charge (if applicable).
17

Input top-side reporting currency adjustments for tax account rollforward (if applicable).
18

Update and review carryover losses and credits expiration schedule.
19

Update and review the utilization schedule.
20 Coordinate with your Administrator to perform a rollover of the system.

Published:

Completing The National Actual Tax Process

Before you begin your annual tax charge process, Tax Provision automates the population of profit before tax (pre-tax income) from the income statement of the entity. The Tax Administrator imports the chart of accounts data, which includes profit before tax by legal entity. The chart of accounts is used to transfer the entity’s profit before tax into the Current Tax Charge input app and report.

Tax Provision then uses the imported chart of accounts to automate the permanent and temporary book-tax differences by legal entity.

The following table outlines the IAS 12 national actual tax process in Tax Provision:

Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculations interface once the lock on the owner is released.

S.no Step Input apps/reports to use
1

Complete the pre-provision process.
2

Update and review fixed assets.
3

For Canadian entities, update and review the asset depreciation schedules.
4

Update and review the current tax charge: income statement, equity, and OCI.
5

Input adjustments in the reporting currency for any translation differences that may exist between Tax Provision and the general ledger or consolidation system.
6

Update acquisition information.
7

Update and review the gross temporary differences rollforward activity using the Temporary Difference method input apps and reports or the Balance Sheet method input apps and reports.

For the Temporary Difference method:

For the Balance Sheet method:
8

Identify the portion of ending cumulative temporary differences that is unrecognised, short-term recognised, and long-term recognised.
9

Review the deferred tax account reports.
10

Review the deferred tax recognised and not recognised.
11

Complete the regional provision process if applicable.
12

Review the rate reconciliation and total tax charge.
13

Review the reconciliation reports.
  • Statutory Total Tax Charge Reconciliation report (NA1504)
  • Consolidated Total Tax Charge Reconciliation report (NA1505)
14

Update and review the tax account rollforward.
15

Update and review the current tax account.
16

Input any top-side reporting currency adjustments for the current tax charge and total tax charge (if applicable).
17

Input top-side reporting currency adjustments for tax account rollforward (if applicable).
18

Update and review carryover losses and credits expiration schedule.
19

Update and review the utilization schedule.
20 Coordinate with your Administrator to perform a rollover of the system.

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