CERTYNEX IFRS ACADEMY

Ivrandel has borrowed 500,000 from a bank; under tax law (case data), repaying the principal will have no tax consequences. What is the tax base of the loan?

Nil, because a loan is never taken into account by the tax authorities.

500,000 multiplied by the tax rate, i.e. the tax saving linked to the repayment.

Nil, because repayment of the principal is not deductible.

500,000, equal to the carrying amount.