Reviewing The National Actual Rate Reconciliation And Total Tax Charge Reports
Tax Provision calculates the effective tax rate (ETR) reconciliation at the statutory and consolidated levels.
The statutory and consolidated rate reconciliation reports capture the following items on a gross and tax-affected basis from Tax Provision:
- net income before tax
- net income before tax adjustments
- permanent GAAP/IFRS Adjustments
- permanent Adjustments
- regional and additional taxes
- special deductions
- change in deferred tax not recognised
- foreign rate difference (consolidated rate reconciliation only)
- additional tax charge items
The consolidated rate reconciliation starts with the global statutory tax rate to reconcile to an entity’s tax rate using the categories noted above. The statutory rate reconciliation is primarily the same calculation as the consolidated rate reconciliation except that the starting point is based on the entity’s statutory tax rate and therefore there is no foreign rate difference. The rate reconciliation calculates the tax impact of reconciling items as a percentage of pre-tax net income before taxes as adjusted.
You can drill down to the lowest level of detail for each of the above reconciling items to view the contribution of each item to the overall effective tax rate depending on the level of information that is entered.
Consolidated Effective Tax Rate report (NA1503)
Use this report to review the national consolidated effective tax rate and related data.
This report contains the following symbols in the Elements dimension (across):
- GRSCYTPR_IAS — Current Year (Income Statement) This column represents the gross amounts entered in the Current Tax Charge input app (NA1201).
- NatNTaxEffect_IAS — IFRS Tax Effect This column represents the net tax effect for values in the Current Tax and Deferred Tax Charge.
- TTaxPct — % This column represents the IFRS Tax Effect divided by Current year (Income Statement).
To review the consolidated effective tax rate:
- In the Tax Provision navigation pane, click Reports.
- Expand National Annual.
- Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
- Click NA1503 - Consolidated Effective Tax Rate Actual.rtp. The report opens in the workspace.
- Review the data for the following symbols:
| Symbol | Description | Source |
|---|---|---|
NIBT — IFRS Net Profit/(Loss) Before Tax |
IFRS Net Profit/(loss) before tax. These amounts automatically flow from the current Tax Charge report to ensure that the starting point of the effective tax rate matches the current tax charge and the legal entity net income before tax. The amount in the tax effect column is the gross amount multiplied by either the company’s global statutory rate (consolidated rate reconciliation) or the entity’s current year tax rate (statutory rate reconciliation). |
Automated from the Current Tax Charge. |
NIBTAdjxx — Company-specific |
Company-specific accounts. |
Manual |
NIBTAdjT — IFRS Net Profit/(Loss) Before Tax Adjustments |
Total adjustments to net profit. |
Calculated (Sum of NIBTADJxx) |
NIBTAdj — GAAP Net Income/(Loss) Before Tax Adjusted |
Total net profit after adjustments before tax. |
Calculated (NIBT + NIBTAdjT) |
GPerm — Permanent GAAP Adjustments |
Total permanent GAAP/IFRS adjustments. These amounts automatically flow from the Current Tax Charge report and are presented in the same format providing further insight into the rate drivers. The amount in the tax effect column is the gross amount multiplied by either the company’s global statutory rate (consolidated rate reconciliation) or the entity’s current year tax rate (statutory rate reconciliation). |
Automated from the Current Tax Charge. |
StPerm — STAT to Tax Permanent Adjustments |
Total STAT to Tax permanent adjustments. |
Automated from the Current Tax Charge. |
PermT — Total Permanent Adjustments |
Total permanent adjustments. |
Automated from the Current Tax Charge. |
NatDefTax_SBPISA_IAS — SBP’s – Income Statement |
Share based payments. |
Automated from the Current Tax Charge. |
NatCurrent_SBPAcChg_IAS — SBP’s - Accounting Charge |
Share based payments – accounting adjustment. |
Automated from the Current Tax Charge. |
NatCurrent_SBPDed_IAS — SBP’s – Sch 23 Deduction |
Share based payments tax deduction. |
Automated from the Current Tax Charge. |
NatETR_SPBT_IAS — SBP’s - Total |
Total share based payments. |
Calculated (NatDefTax_SBPISA_IAS + NatCurrent_SBPAcChg_IAS + NatCurrent_SBPDed_IAS) |
OthTaxT — Total Other Provision |
Total Other Provision. |
Calculated |
RegTotTaxConsol — Total Regional Provision |
Total Regional Provision. |
Automated from the regional tax process |
RegTotTaxAdjConsol — Total Regional Tax Deduction |
Total Regional Tax Deduction. |
Automated from the regional tax process |
TotRegTotTaxConsol — Total Regional Total Provision |
Total Regional Total Provision. |
Calculated |
DedTaxTConsol — Total Additional Taxes |
Total Additional Taxes. |
Calculated |
SpecDedM — Special Deductions |
These amounts automatically flow from the Current Tax Charge report and are presented in the same format providing further insight into the rate drivers. The amount in the tax effect column is the gross amount multiplied by the entity’s current year tax rate |
Automated from the Current Tax Charge. |
TXTDTNRC — Change in Deferred Tax Not Recognised |
Total change in deferred tax not recognised. |
Calculated |
ForTDiff — Foreign Rate Difference |
Foreign rate difference. This symbol appears in the consolidated report only. |
This is calculated as part of this report and is equal to the sum of the gross net income before tax as adjusted and permanent differences multiplied by the difference between the entity’s statutory tax rate and the global statutory tax rate. |
NatAddCurrentM001_IAS — Other Additional Charges |
Additional charges that impact the current tax charge and Effective Tax Rate report. |
Automated from the Current Tax Charge. |
NatAddCurrentM002_IAS — Other Taxes |
Any other taxes (e.g. capital taxes, foreign taxes) that impact the current tax charge and Effective Tax Rate report. |
Automated from the Current Tax Charge. |
NatAddCurrentM003_IAS — Tax Holiday |
The impact of any Tax Holidays from jurisdictions in which there is currently no tax rate or a lower tax rate. |
Automated from the Current Tax Charge. |
NatAddCurrentM004A_IAS — UTP Tax - Permanent Differences - National |
The tax impact from National level Uncertain Tax Positions (UTP) related to permanent differences. |
Automated from the Current Tax Charge. |
|
NatAddCurrentM004B_IAS — UTP Tax - Temporary Differences – National |
The tax impact from National level Uncertain Tax Positions (UTP) related to temporary differences. |
Automated from the Current Tax Charge. |
NatAddCurrentM004T_IAS — UTP Tax - National |
This symbol represents the UTP Tax National total. This symbol is the sum of account NatAddCurrentM004A_IAS and account NatAddCurrentM004B_IAS. |
Automated from the Current Tax Charge. |
NatAddCurrentM005_IAS — UTP Interest |
The current period interest accrued related to National level Uncertain Tax Positions (UTP). |
Automated from the Current Tax Charge. |
NatAddCurrentM006_IAS — UTP Penalty |
The current period penalties related to National level Uncertain Tax Positions (UTP). |
Automated from the Current Tax Charge. |
NatAddCurrentM007_IAS — UTP National Tax re: Interest Paid |
The current period interest paid related to National level Uncertain Tax Positions (UTP). |
Automated from the Current Tax Charge. |
RepCurAdjCurrent — Reporting Currency Only Adjustment – Current |
The reporting currency adjustment for current tax charge. |
Automatically populated from the NIBT Reporting Currency Only Adjustments input app (NA1299). |
NatAddCurrentM_IAS — Additional Current Charges - Manual |
Sum of all manual Additional Current Charges. |
Sum of NatAddCurrentxxx. |
NatAddTotalS002 — Deferred Only Adjustments |
The tax impact of the amounts in the other adjustments deferred only column of the Deferred Tax Account report (NA1401). |
Automated |
NatAddTotalS004 — Deferred Tax Impact of Transfers |
The tax impact of the amounts in the transfers column of the Deferred Tax Account report (NA1401). |
Automated |
NatAddCurrentS003 — True Up – Current Tax Expense - Income – Automated |
The prior year adjustment on permanent items as calculated on the Prior Year Adjustment input app (NA1101). |
Automated |
NadAddTotalS001 — True-up – Deferred Tax Expense |
The prior year adjustment on permanent items as calculated on the Prior Year Adjustment input app (NA1101). |
Automated |
NatAddTotalS005 — Deferred Prior Year Adjustments |
The tax impact of the amounts in the prior year adjustments column of the Deferred Tax Account report (NA1401). |
Automated |
NatAddCurrent006 — Current Prior Year Adjustments |
The tax impact of the amounts in the prior year adjustments column of the Current Tax Account input app (NA1602). |
Automated |
NatAddTotalPYA_IAS — Additional Total Prior Year Adjustments |
Sum of the true-ups and prior year adjustments. |
Sum of Additional Provision Items from the total and current tax charge. |
NatAddTotalS003A — Rate Change BOY |
The impact of tax rate changes as calculated in the Deferred Tax Account report (NA1401). |
Automated |
NatAddTotalS003B — Rate Change CY |
The impact of tax rate changes as calculated in the Deferred Tax Account report (NA1401) |
Automated |
NatAddTotalS003 — Rate Change |
Sum of beginning of year and current year rate change. |
Calculated |
NatAddTotalS009_IAS — Unexplained Deferred Tax Movement |
The tax impact of the amounts in the Impact tax charge column of the Deferred Tax Account report (NA1401). |
Automated |
NatAddTotalS — Additional Total Charge - System |
Additional total charge - system. |
Calculated |
RepCurAdjTotal_IAS — Reporting Currency Only Adjustment – Total Provision |
Input in the Reporting Currency Only Adjustments input app. |
Automated |
NatAddTotalM — Additional Total Charge – Manual |
Sum of additional total charge - manual items. |
Calculated |
AddPrvT — Additional Charges Total |
Sum of additional tax charge items. |
Calculated |
NatETRConsol_IAS — Consolidated ETR |
Consolidated effective tax rate. |
Calculated |
NatAddTotalFXAdj_IAS - Income FX Adjustment |
Foreign exchange adjustment for NIBT. |
This is calculated as part of this report and is equal to the tax effected net income before tax multiplied by the difference between the entity's imputed average FX rate and the entity's applied average FX rate. |
Statutory Effective Tax Rate report (NA1501)
The Statutory Effective Tax Rate report (NA1501) contains the same symbols as the Consolidated Effective Tax Rate report (NA1503) reported at the legal entity level.
This report contains the following symbols in the Elements dimension (across):
- GRSCYTPR_IAS — Current Year (Income Statement) This column represents the gross amounts entered in the Current Tax Charge input app (NA1201).
- NatNTaxEffect_IAS — IFRS Tax Effect This column represents the net tax effect for values in the Current Tax and Deferred Tax Charge.
- TTaxPct — % This column represents the IFRS Tax Effect divided by Current year (Income Statement).
To review the Total Tax Charge:
- In the Tax Provision navigation pane, click Reports.
- Expand National Annual.
- Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
- Click NA1501 - Statutory Effective Tax Rate.rtp. The report opens in the workspace.
- Review the account values for each appropriate element. For information on the accounts and elements in this report, see Consolidated Effective Tax Rate report (NA1503).
Total Tax Charge report (NA1502)
Tax Provision calculates a total tax charge, which is equal to the current and deferred charges, in a format similar to the current tax charge. It produces the same result as the Effective Tax Rate reconciliation. The system’s total tax charge is set up as an independent calculation of an entity’s total tax charge by adjusting an entity’s profit before tax by permanent differences only. The resultant tax charge is then adjusted for any adjustments that are not based on current year P/L activity.
To review the Total Tax Charge:
- In the Tax Provision navigation pane, click Reports.
- Expand National Annual.
- Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
- Click NA1502 - Total Tax Charge.rtp. The report opens in the workspace.
- Review the data for the following:
- net income before tax
- net income before tax adjustments
- GAAP/IFRS permanent adjustments
- STAT to Tax permanent differences
- IFRS adjustments
- regional and additional taxes
- country book tax income
- special deductions
- adjusted country book tax income
- national tax rate
- calculated national total charge
- change in deferred tax not recognised
- losses used and not previously recognised
- additional charges
- calculated total charge