Updating And Reviewing The Current Tax Charge

After the Tax Administrator imports data into the system, Tax Provision automatically calculates and populates profit before tax and permanent and temporary differences. You can then access the Current Tax Charge input app (NA1201) to review and post adjustments to the automated profit before tax and permanent/ temporary difference amount. In addition, you can also enter data for permanent and temporary differences and any additional tax charges. Any changes to the data area automatically update the Current Tax Charge calculation and related schedules and reports.

Current Tax Charge input app (NA1201)

Use this input app to review automated adjustments and enter manual adjustments to the accounting profit before tax to reach the profit on which income tax is charged. You can also use this schedule to include adjustments for tax credits and losses.

This input app includes Analyze functionality. For more information, see Analyzing data for automation source information.

This input app contains the following symbol in the Elements dimension (across):

GrsCY_IAS — Current Year (Income Statement) Use this column to enter activity during the current year that increases or decreases the gross temporary difference and has an impact on the tax provision.

To update the current tax charge:

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand National Annual.
3. Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
4. Click NA1201 - Current Tax Charge.lvapp. The input app opens in the workspace.
5. Expand the TaxIncomeBeforeLoss_IAS — Taxable Income/(Loss) Before Losses category, and enter data for the following symbols:

   1. NIBTAdjxx — Companyspecific: IFRS Net Profit/(Loss) Before Tax Adjustments. These accounts are specific to your company.

   2. GPerm — GAAP to STAT Permanent Differences: All symbols under this parent symbol are adjustments to GAAP/IFRS to STAT permanent differences. Every calculated permanent difference has an associated manual adjustments account. For example, Meals & Entertainment - Adjustment.

   3. GTemp — GAAP to STAT Temporary Differences: All symbols under this parent symbol are adjustments to GAAP/IFRS to STAT temporary differences.

   4. StPerm — STAT to Tax Permanent Differences: All symbols under this parent symbol are adjustments to STAT to Tax permanent differences.

   5. StTemp — STAT to Tax Temporary Differences: All symbols under this parent symbol are adjustments to STAT to Tax temporary differences.

   6. PensIS_IAS — Pensions: Current tax income statement pension adjustment.

   7. NatCurrent_SBPAcChg_IAS — SBP’s – Accounting Charge: Share Based Payments – Accounting Charge adjustment.

   8. NatCurrent_SBPDed_IAS — SBP’s – Sch 23 Deduction: Share Based Payments – Tax Deduction adjustment.

   9. RegIncTax — Regional Income Taxes: Regional income taxes to deduct.

   10. OthIncTax — Other Income Taxes: Other income taxes to deduct.

6. Expand the LTCapLossT — Total Long Term Capital Loss Carryforward category, and enter data for the following symbols:

   1. LTCapLossNC — Long Term Capital Loss Carryforward - Non-Current: Non-current long term capital losses carried forward from the previous year.

   2. LTCapLossCY — Long Term Capital Loss Carryforward - Current: Current long term capital losses carried forward from the previous year.

7. Expand the NLossT_IAS — Total Losses category and enter data for the following symbols:

   1. NLossCYGA_IAS — Tax Loss - CY Generated – Adjustment: Manual adjustment for the calculated net operating loss.

   2. NLossCYU_IAS — Tax Loss - CY Utilized: Utilization of an existing net operating loss carryforward in the current period.

   3. NLossCA_IAS — Tax Loss - Consolidating Adjustment: Impact of any consolidated level adjustment to net operating losses at the legal entity level.

8. For SpecDedM — Special Deductions - Manual, enter any additional deductions not included in income taxes or tax losses.
9. Expand the TaxCrPrmT — Total Tax Credits - Permanent category, and enter data for the following symbols:

   1. TaxCrForPrmM — Foreign Tax Credits - Permanent - Manual: Permanent national foreign tax credits.

   2. NatTaxCrForPrmCY — Creditable Foreign Tax Credits - Permanent: Permanent creditable national foreign tax credits.

   3. NatTaxCrForPrmNC — Noncreditable Foreign Tax Credits - Permanent: Permanent non-creditable national foreign tax credits.

   4. TaxCrPrmOth — Other Tax Credits - Permanent - Manual: Other permanent national tax credits.

10. Expand the TaxCrT — Total Tax Credits - Temporary category, and enter data for the following symbols:

    1. TaxCrForM — Foreign Tax Credits - Temporary – Manual: Temporary national foreign tax credits.

    2. NatTaxCrForCY — Creditable Foreign Tax Credits - Temporary: Creditable national foreign tax credits.

    3. NatTaxCrForNC — Non-creditable Foreign Tax Credits – Temporary: Non-creditable national foreign tax credits.

    4. TaxCrAMT — US Alternative Minimum Tax: US Alternative Minimum Tax (AMT).

    5. GenBusCr — General Business Credits: General business credits.

    6. TaxCrOth — Other Tax Credits - Temporary - Manual: Other temporary national tax credits.

11. Expand the AddPrv_IAS — Additional Charges category, and enter data for the following symbols:

    1. NatAddCurrentM001_IAS — Other Additional Charges: This account can be used to enter any other additional charges that impact the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    2. NatAddCurrentM002_IAS — Other Taxes: This account can be used to enter any other taxes (e.g. capital taxes, foreign taxes) that impact the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    3. NatAddCurrentM003_IAS — Tax Holiday: This account can be used to enter the impact of any Tax Holidays from jurisdictions in which there is currently no tax rate or a lower tax rate. The value entered impacts the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    4. NatAddCurrentM004A_IAS — UTP Tax – Permanent Differences - National: Use this symbol to manually enter the tax impact from National level Uncertain Tax Positions (UTP) related to permanent differences. The value entered impacts the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    5. NatAddCurrentM004B_IAS — UTP Tax – Temporary Differences - National: Use this symbol to manually enter the tax impact from National level Uncertain Tax Positions (UTP) related to temporary differences. The value entered impacts the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    6. 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.

    7. NatAddCurrentM005_IAS — UTP Interest: Use this symbol to manually enter the current period interest accrued related to National level Uncertain Tax Positions (UTP). The value entered impacts the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    8. NatAddCurrentM006_IAS — UTP Penalty: Use this symbol to manually enter the current period penalties related to National level Uncertain Tax Positions (UTP). The value entered impacts the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    9. NatAddCurrentM007_IAS — UTP National Tax re: Interest Paid: Use this symbol to manually enter the current period interest paid related to National level Uncertain Tax Positions (UTP). The value entered impacts the current tax charge and Effective Tax Rate report. The value in this account is entered on an after tax basis.

    10. RepCurAdjCurrent — Reporting Currency Only Adjustment - Current: This symbol represents the reporting currency adjustment for current tax charge. It is automatically populated from the NIBT. Reporting Currency Only Adjustments input app (NA1299). This account is used to make any adjustments in the reporting currency for any translation differences that may exist between the Tax Provision system and the general ledger or consolidation system.

    11. NatAddCurrentM_IAS — Additional Current Charges -Manual: This symbol represents the total manual Additional Current Charges. This symbol is the sum of the above symbols.

    12. NatAddCurrentS001_IAS — Rate Differential for Temporary Differences: This symbol is automated and only applies when deferred tax override rates are used. It represents the difference in tax rates for the activity of those temporary differences and carryforward accounts that impact both the deferred tax charge and calculation of taxable income. For more information on tax override rates, see the Longview Tax Administrator’s Guide. An example of the deferred tax override rate process is as follows:

        • Assumes a temporary difference with a current year activity (activity impacting both the current tax charge and the gross temporary difference roll forward) of 100,000.
        • Assumes the entity has a current year tax rate of 35%.

    13. Assumes that all activity related to this temporary difference is subject to a tax rate of 20% for the calculation of the deferred tax.

    In this case, the tax impact on the current tax charge from this temporary difference is 35,000 (100,000 multiplied by 35%) compared to the impact on the deferred tax charge of 20,000 (100,000 multiplied by 20%), a difference of 15,000. This 15,000 is reflected as an additional provision item in the current tax charge to ensure that the rate differential does not impact the effective tax rate.

13. NatAddCurrentS002_IAS — Deferred Adjustments - Impact both Deferred and Current: This symbol represents the deferred adjustments that impact both the current and deferred charge. It is equal to the value at the intersection of account DEFTAX_IAS and element NetNCYOthCurDfd_IAS in the deferred tax report.

14. NatAddCurrentS_IAS — Additional Current Charges - System: This symbol represents the total system Additional Current Charges. This symbol is the sum of NatAddCurrentS001_IAS and NatAddCurrentS002_IAS.

Current Tax Charge - Equity input app (NA1202)

If you are using the Income/Equity/OCI setting, you can use this input app to calculate the current tax charge relating to equity and other comprehensive income activity. Use this input app to enter amounts that were booked directly in equity but are relevant to tax, and the current tax charge is calculated on these amounts.

This input app includes Analyze functionality. For more information, see Analyzing data for automation source information.

This input app contains the following symbols in the Elements dimension (across):

• GrsEq_IAS — Equity

  Use this column to enter activity during the year that increases or decreases the gross temporary difference but does not have an impact on the current tax charge (the impact is to an account other than the income statement, such as Goodwill).

• GrsOCI_IAS — OCI

  Use this column to enter activity during the year that increases or decreases the gross temporary difference and impacts other comprehensive income. Values in this column do not impact the tax charge.

To update the current tax charge - equity and other comprehensive income:

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand National Annual.
3. Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
4. Click NA1202 - Current Tax Charge - Equity.lvapp. The input app opens in the workspace.
5. Enter the equity and OCI temporary difference movements for the appropriate accounts. For information on the accounts in this input app, see the Current Tax Charge input app (NA1201).
6. When you are finished, click Submit.