Dalvine group holds an industrial subsidiary: consolidated carrying amount of the investment 2,900,000, tax base 2,100,000, the gap coming from profits retained in reserves. The parent, which controls distributions, has decided to bring up 300,000 and to leave the rest reinvested indefinitely. The dividend will be taxed at 8% in the parent (data). Compute the difference, the deferred tax liability and the difference with no liability.
- Consolidated carrying amount
- 2,900,000
- Tax base of the shares
- 2,100,000
- Dividend the parent has decided to bring up
- 300,000
- Tax on the distribution in the parent (%)
- 8 %