The tax depreciation analysis tool is one of the tools employed in data analytics for the corporate income tax using information from the client’s assets register in the form of a data file. Once the data is uploaded to the analytics tool, automated tests verify the appropriateness of specific provisions of the Income Taxes Act for tax depreciation applied and identify specific items that may be in breach of the Act or could be modified to achieve savings.
What the tax depreciation analysis covers, but is not limited to?
Accuracy of the calculation of tax depreciation for tangible and intangible fixed assets in general terms
Straight-line and accelerated depreciation methods
Interruption of tax depreciation
Depreciation of intangible assets, incl. with several technical improvements
Extraordinary depreciation according to Section 30a of the Income Taxes Act
Depreciation Group 1A
Tax depreciation of disposed assets in the year of disposal
Tax depreciation of photovoltaic power plant equipment
Benefits
Efficient and swift review of all fixed assets
Significant reduction in the risk of errors and potential penalties
Identification of opportunities
Detailed evaluation of analyses together with recommendations to minimise risks