7.XYZ ltd has a taxable temporary difference of R 150000. The income tax rate is 28%.XYZ ltd statement of financial position would reflect the following

• A. deferred tax liability of R 42000
• B. deferred tax income of R 42000
• C. deferred tax asset of R 42000
• D. deferred tax expenses of R 42000

7.The company tax rate prior to the budget speech was 28%. On 11 April 2014, The Minister of finance announced the reduction of tax rate to 25% from 1 July 2014. The financial statements for reporting period ending 28 February on 25 July 2014. 25% should be the tax rate applied.

Select one

• True
• False