EFRAG's 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.

Comment Letter on DI-2015-1 Uncertainty over Income Tax Treatments.pdf