Preparing your first IFRS based tax returns
The compulsory financial reporting based on IFRS which kicks off for the first time this year end is enough to make tax accountants for listed companies (especially banks and other financial institutions) nervous. Coupled with this is the requirement to file tax returns based on these new financial statements also for the first time, keeping in mind that the new self-assessment regulation gives little room for settlement of tax liability after the tax filing deadline. This edition of the tax newsletter details some last minute preparations that will help you meet the tax filing deadline.
The Federal Inland Revenue Service (FIRS) has also done substantial work in preparing a circular that will serve as a guide to tax officers and practitioners in preparing tax computations based on IFRS accounts. The draft Information Circular was presented to stakeholders on 6 December 2012 for critique and comments. The FIRS has given a firm commitment that the final copy of the circular will be released before the end of this year.
The Deloitte Tax department have a dedicated IFRS team which has over time, provided IFRS tax support to several publicly listed entities during conversions in different industries.