12/02/2016 - EFRAG's Comment Letter on the Draft IFRIC Interpretation Uncertainty over Income Tax Treatments
EFRAG has issued its Comment Letter on the Draft IFRIC Interpretation Uncertainty over Income Tax Treatments
On 21 October 2015, the IFRS Interpretations Committee has published the Draft IFRIC Interpretation DI/2015/1 Uncertainty over Income Tax Treatments.
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.
In its comment letter, EFRAG supports the proposed requirements as they would remove the existing inconsistencies in accounting for uncertain income tax treatments.
EFRAG also observes that the proposed requirements may, in certain circumstances, lead to accounting for uncertainties arising on other taxes or positions which may be viewed as economically similar to income taxes, on different bases. Without influencing the IFRS Interpretations Committee’s work on finalising the Interpretation, EFRAG suggests that the IASB consider whether and how to address these differences.
The comment letter can be found here.