Completing The National Actual Tax Process
Completing The National Actual Tax Process
The Tax Provision national actual process allows you to prepare a full tax provision based on year-to-date numbers.
Before you begin your annual tax provision process, Tax Provision automates the population of pre-tax income from the income statement of the entity. The Tax Administrator imports the chart of accounts data, which includes pre-tax inco...
Updating And Reviewing Asset Depreciation
Updating And Reviewing Asset Depreciation
This section applies to Canadian entities and explains the input apps required to process depreciable assets for the tax year. Tax Provision includes several input apps and reports to facilitate in calculating Capital Cost Allowance and Cumulative Eligible Capital for depreciable assets.
Capital Cost Allowance input app (NA0921)
This input app applie...
Updating And Reviewing The Current Provision
Updating And Reviewing The Current Provision
Tax Provision calculates a national current provision for each entity using the following calculation:
Calculation
Description
start with
net income before tax (NIBT)
plus
national income before tax adjustments
equals
national taxable income/loss before net operating losses
plus
national net operating losses, charitable contribution ...
Inputting Top-Side Reporting Currency Adjustments For Net Income Before Tax
Inputting Top-Side Reporting Currency Adjustments For Net Income Before Tax
Tax Provision allows you to enter top-side adjustments, which are adjustments that are recorded after the legal entity general ledgers have been closed.
NIBT Reporting Currency Only Adjustments input app (NA0299)
Use this input app to provide flexibility when the translations in the tax database may not match the fin...
Updating Acquisitions Information
Updating Acquisitions Information
If your company had any acquisitions in the previous year, you can manually input the gross and net amounts and the system does not calculate the deferred taxes. Any rate changes that result from acquisition information are calculated by the system.
Acquisitions input app (NA0303)
Use this input app to manually input any temporary differences, net operating...
Updating Gross Temporary Difference Rollforward Activity
Updating Gross Temporary Difference Rollforward Activity
Once you import data, Tax Provision automatically calculates and populates pre-tax income and permanent and temporary differences. You can then access an input app to review and post adjustments to the automated amounts for pre-tax income and permanent/temporary differences. In addition, you can manually adjust permanent and temporary d...
Reviewing Temporary Difference Rollforward Activity
Reviewing Temporary Difference Rollforward Activity
Once temporary difference rollforward activity has been updated in the Temporary Differences input app (NA0301), you can review the related reports.
Use the following table to determine the related reports to use for the temporary difference method used by your company:
Method
Reports to use...
Temporary Difference method
Deferred ...
Reviewing The Deferred Tax Rollforward
Reviewing The Deferred Tax Rollforward
Tax Provision calculates a detailed deferred tax amount and deferred tax provision. Deferred taxes and provisions are calculated by legal entity and temporary difference. Tax Provision is set up to maintain and automate, where possible, the rollforward of each legal entity’s detailed gross temporary differences by disclosure category. Beginning of year g...
Reviewing The Effective Tax Rate And Total Provision
Reviewing The Effective Tax Rate And Total Provision
Tax Provision calculates the effective tax rate (“ETR”) reconciliation automatically at the statutory and consolidated rates. The statutory and consolidated rate reconciliation reports capture the following items on a gross and tax affected basis:
net income before tax
net income before tax adjustments
GAAP to STAT permanent differences
ST...
Reviewing Reconciliation Reports
Reviewing Reconciliation Reports
After you review the total provision, you can use reports to ensure that the total for the current provision and deferred tax matches your statutory and effective tax rates.
Statutory Total Provision Reconciliation report (NA0504)
Use this report to verify that the total of the current provision and deferred tax provision matches the total calculated for the...
Updating And Reviewing The Tax Account Rollforward
Updating And Reviewing The Tax Account Rollforward
Tax Provision automatically loads the beginning of year and end of year General Ledger balances and system calculated provisions. Then you can manually enter non-automated activity (tax payments, tax refunds, income tax audits, or other adjustments) in an input app.
Tax Account Rollforward (TARF) input app (CC0601)
Use this input app to ente...
Inputting Top-Side Reporting Currency Adjustments For The Current And Total Provisions
Inputting Top-Side Reporting Currency Adjustments For The Current And Total Provisions
Tax Provision allows you to enter top-side adjustments, which are adjustments that are recorded after the legal entity general ledgers have been closed.
Use the Reporting Currency Only Adjustments input app to provide flexibility where the translations in the tax database may not match the financial stateme...
Inputting Top-Side Reporting Currency Adjustments For Tax Account Rollfoward
Inputting Top-Side Reporting Currency Adjustments For Tax Account Rollfoward
Tax Provision allows you to enter top-side adjustments, which are adjustments that are recorded after the legal entity general ledgers have been closed.
Use the TARF Reporting Currency Only Adjustments input app to provide flexibility where the translations in the tax database may not match the financial statements.
...
Updating Carryover Losses And Credits
Updating Carryover Losses And Credits
If your company has carryover losses and credits, you can manually input the associated amounts of the loss/credit into the appropriate year of expiration row in order to more accurately track the ending deferred balance by year of expiration.
Loss and Credit Expiration Schedule Actual input app (CA0311)
Use this input app to schedule the expected expir...
Loss And Credit Expiration Schedule Actual Input App (CA0311)
Loss And Credit Expiration Schedule Actual Input App (CA0311)
Use this input app to schedule the expected expiration of carryover losses and credits. Enter the year of origin and the gross amount of the loss/credit for each year of expiry. The year of expiry column is populated by the system with the next ten years.
This input app contains the following symbols in the Elements dimension (ac...