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Alignment between accounting and tax results

Typical information we need to review about the alignment between your accounting and tax results.

Last updated 16 August 2022

Financial information and tax reconciliation

Provide the following for the review period:

  • statement of taxable income and any supporting working papers
  • detailed trial balances
  • reconciliation between the accounting profit before income tax (PBIT) per the financial statements and the PBIT in the tax return.

Supporting working papers to the tax return, schedules and disclosures

Provide the supporting working papers for the tax return, schedules and disclosures, including the:

  • International dealings schedule
  • Capital gains tax schedule
  • Consolidated groups losses schedule / Losses schedule (as applicable)
  • Capital allowance disclosures
  • Franking account balance disclosure
  • Taxation of financial arrangement (TOFA) gains and losses disclosure.

Tax effect accounting

Provide the following information (or tax effect working papers) which support the income tax note in the financial statements showing:

  • a breakdown of the material non-temporary differences
  • a breakdown of material items impacting deferred tax
  • any amendments to current and deferred tax in respect of prior periods and the reasons for these amendments
  • any significant unders or overs identified for the review period
  • an explanation of why the effective tax rate (ETR) of the group is different to the headline corporate tax rate of 30% (where the ETR is calculated as current tax expense per the financial statements over PBIT per the financial statements).

Elections or choices

Provide details of any elections or choices made under the Australian income tax law (including any elections made during the review period and in earlier income years applicable to the review period).

QC54132