BusinessCompany NewsBudget 05: IFRS raises tax fears

Budget 05: IFRS raises tax fears

Companies face risk of underpaying tax in wake of IFRS.

The move to close loopholes that can be exploited as companies switch to IFRS could result in some companies having underpaid in tax last year.

Last year’s pre-Budget report revealed that the government would defer the tax treatments for transitional adjustments to IAS until 2006 at the earliest.

From 14 December last year, companies that moved to realise a loss in their accounts before the new tax treatments kick in will no longer be able to feel the benefit.

For companies with year end of 31 December that took this step, it is likely to mean tax payments were incorrect for their 2004 figures.

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

12m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor