CERTYNEX IFRS ACADEMY

Hollivane's year-end file states: 'questionable deduction of 400,000; acceptance unlikely if audited, but audit probability only 10%; no additional tax recognised'. Where is the error?

The amount: the deduction should have been 40,000.

The principle: an uncertainty is only taken into account after a written reassessment notice.

The assumption: audit probability must not be taken into account; examination is assumed.

The calculation: 10% of the tax at stake should have been recognised.