16/11/2015 - EFRAG's draft comment letter on the Draft IFRIC Interpretation DI/2015/1 Uncertainty over Income Tax Treatments
The IFRS Interpretations Committee has published the Draft IFRIC Interpretation DI/2015/1 Uncertainty over Income Tax Treatments, with comments due by 19 January 2016.
The proposals are designed to clarify how uncertainties over income tax treatments are reflected in determining taxable profits, tax bases, unused tax losses and tax rates. The draft interpretation applies to income taxes in scope of IAS 12.
EFRAG has issued its draft comment letter on the draft Interpretation where it supports the proposed requirements as they would remove the existing inconsistencies in accounting for uncertain income tax treatments.
However EFRAG TEG has observed that the proposed requirements may create potential inconsistency between accounting for uncertainty in income tax treatments and accounting for uncertainties relating to other types of tax and similar positions. Through a separate Appendix to this draft comment letter, EFRAG is seeking constituents' views on whether this potential inconsistency should be addressed. The outcome of this consultation will not be part of the final comment letter.
EFRAG requests comments by 13 January 2016.
The draft comment letter can be accessed here.