CERTYNEX IFRS ACADEMY

The country of the subsidiary Quorvane has adopted a qualified domestic minimum top-up tax implementing the Pillar Two rules. The finance director proposes treating it as a levy outside IAS 12, on the grounds that it is computed under its own rules. What is the right view?

The proposal is sound: computation under specific rules excludes the tax from IAS 12.

The tax falls under IAS 12, qualified domestic minimum top-up taxes being expressly covered.

The tax falls under IAS 37, as an obligation arising from legislation.

The treatment depends solely on the amount of the top-up tax.