If a Taxable Person is carrying a provision (e.g. a provision for doubtful debts) in their accounts prior to the effective Corporate Tax date, what will be the tax treatment if the provision is released after the effective Corporate Tax date? Will the credit to the P&L be subject to Corporate Tax?
No particular modifications are stipulated concerning the release of a provision established before the effective Corporate Tax commencement date. Consequently, any associated credit recorded in the Profit and Loss statement will be liable to Corporate Tax.
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