Deferred Taxation, 5th Edition, Tan Liong Tong

Deferred Taxation

Over the years, although the fundamental approach to deferred taxation remains the same (i.e., a temporary difference approach), there have been numerous amendments and changes in principles introduced to MFRS 112 Income Taxes. The MPERS Reporting Framework used by private entities contains a section on income taxes which is similar but not identical to MFRS 112. There are new and amended MFRSs issued by the MASB after September 2020, such as the Pillar Two Tax Reform, that need to be addressed. The Malaysian Tax Budget 2024, approved in Parliament in October 2023, has introduced a limited capital gains tax for gains arising on disposals of unlisted shares.

The 5th edition of this book has been written to include these amendments and changes. The tax treatments of various Public Rulings issued by the Inland Revenue Board are discussed in this new edition.

Key features:

• Detailed explanations of the tax treatments and tax effects of revenue transactions arising from the adoption of MFRS 15 Revenue from Contracts with Customers.
•  Detailed explanations of the tax treatments and tax effects of lease arrangements arising from the adoption of MFRS 16 Leases.
• Guidance on the application of IC 23 Uncertainty over Income Tax Treatments.
• Guidance on the recognition of deferred taxes arising from a single transaction in a lease contract.
• More detailed explanation on the tax implications of adopting MFRS 9 Financial Instruments, and tax effects of banking and insurance businesses.
• Explanation on the tax effects of assets measured at fair value, including biological assets measured at fair value and investment property measured at fair value.
• More detailed guidance on tax effects of items recognised outside profit or loss.
• Updates of the tax treatments for changes in tax laws since 2017, such as tax losses carried forward, RPGT rates, and income tax rates for small and medium-sized companies.
• Explanation of the exception for deferred taxation arising from implementation of the International Pillar Two Tax Reform.
• Tax implications of capital gains tax on gains and losses arising on disposal of unlisted shares.