dear experts,

im facing difficulties on the computation of my deferred taxation , and my boss required to do some proofing to ensure the accuaracy.

my formula is as follows: however i have purchased some assets which is under Hire purchase , please advise how do i do my proofing?

2007 2006
S$ S$
Net book value of fixed assets
per balance sheet 2,978,924 2,169,787
Deduct: Amounts not qualifying
for capital allowances (1,913,430) (1,995,091)
1,065,494 174,696
Deduct: Written down value for
taxation purposes as
per computations (930,560) (97,907)
(A) 134,934 (B) 76,789
Difference (B) – (A) (58,145)
(B) – (A)
Proof:
Capital allowances claimed 117,066
Deduct: depreciation charges in accounts 56,493
Add: Profit on sale of fixed assets 0
Depreciation on assets not qualifying
for capital allowances
Deduct: Loss on sale of fixed assets 0
Deduct: Repair & maintenance -TELEPHONE SYSTEM 2,430
Difference which equals (B) – (A) 58,143
*Remark: Deferred tax only provided when, on excess of capital allowances over depreciation:
that means, if (A) is positive;

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