Case 2: Carrying forward (Deferred) of losses: The amount of losses carried forwarded until 31/12/2005 for a resident company is SR 4,000,000. The company provided its tax declaration for the year 2006 which included a net profit (acct income) for SR3,000,000. When the GAZT had did the verification, it added some non-deductible expenses for SR400,000. In this manner the tax base (2006) became = SR 3,400,000 Noting that the taxpayer deducted the losses carried forward from the tax base of 2006 as allowed by the regulation, you are demanded to: A 1/ Calculate the tax for the year 2006. 2/ Determine the balance of losses carried forward for the year 2007. Answer: B We suppose that the net profit of this company for the year 2007, is= SR 17,200,000 and after verification, the non-deductible expenses and the exempted revenues are equal to= 0. 1/ Calculate the income tax for the year 2007 noting that the taxpayer had deducted the losses carried forward from the tax base of 2007 as allowed by regulation