dadis tributed Profits is 50% refundable when profits are distributed. Tax of the reportng period e Reporting , the Entity recognises Dividends of 10,000 from previous O perating Profits as a Liability. E xamine the Rate on Distributed Profits is 35%. ed or declared od (31st March), the Entity does notrecognise a Liability for Dividends prop Sy, on enty, on Rate on thond of the repo ftr the st May counting for Income Tax in this case. Period. Taxable Income is 1,00,000. Net Taxable Temporary Difference is 40,000. Subseq Taxa