Gorsalis measures an office building let to third parties under the IAS 40 fair value model: 3,000,000 at the reporting date. Under the legislation in the case, rents are taxed at 30% and a disposal is taxed at 20% on the difference between the price and a tax base of 2,200,000. Nothing allows the sale presumption to be rebutted. Compute the deferred tax liability.
- Fair value (carrying amount)
- 3,000,000
- Tax base on disposal
- 2,200,000
- Rate on rents (%)
- 30 %
- Rate on disposal (%)
- 20 %