The logistics subsidiary Ombrevaux, taxed separately, incurs a 20X5 tax loss of 440,000, which can be carried back in full against its 20X4 taxable profit, taxed at 30% (law in the case; the tax paid for 20X4 amply covers the refund). The refund will be received in 20X6. Record the 20X5 entry.
- 20X5 tax loss
- 440,000
- 20X4 tax rate (%)
- 30 %