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Expert Limited is a retail company with a 28 February year-end. The following relates to the companys tax matters: 2023 2022 Estimated taxable income R995
Expert Limited is a retail company with a 28 February year-end. The following relates to the companys tax matters:
2023 | 2022 | |
Estimated taxable income | R995 200 | R878 700 |
Actual taxable income per assessment | N/A | R870 200 |
Deferred tax asset - 1 March. | R155 400 | R125 200 |
Deferred tax asset - 28 February. | R147 800 | R155 400 |
Expert Limited received a tax refund from SARS of R3 200 on 28 August 2022. Upon receipt of the refund, the accountant processed the following journal:
Account | Debit | Credit |
Bank (SFP) | 3 200 | |
Taxable payable (SFP) | 3 200 | |
(Account for SARS refund on 2022 assessment) |
Assume a corporate income tax rate of 28%.
REQUIRED:
Prepare the income tax expense note, including comparative figures, of Expert Limited for the year ended 28 February 2023. A tax rate reconciliation is not required.
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