What are the best practices for preparing final accounts for corporate taxation?

As the codes of taxation changes overtime according to different global legislative laws, so is the accounting standards are reviewed from time to time. Therefore, Tax Accountants must from time to time adopt practices that matches its environmental tax laws and regulations.Tax codes are different globally.

Before other considerations, 1. Keep tabs on the important filing dates. 2. keeping accurate records daily makes the final task easier. 3. Understand tax laws and know how to use them to your organisations advantage (in a lawful way).

Different countries have different taxation rules. So it is very important to understand the enacted tax laws. To enhance tax law understanding: 1. Follow the guidelines, publications, seminars, workshops organized by local tax authorities. 2. Refer to the tax authority's website to stay updated on any tax amendments. 3. Follow tax experts' advice to optimize the advantages, reliefs and exemptions available to ensure tax planning. 4. Align financial records to have compliance with tax laws. 5. Note down the key deadlines to stay ahead. 6. Also check whether any double taxation avoidance agreements are signed between the countries that can minimize double taxation effect.

Best practices for preparing final accounts for tax purposes is ensuring we prepare chart of accounts in a manner that can record Income and capture expenses that are specifically treated while preparing total income statement for tax purposes. Companies generally have practuce of detailed financials however the statement of total income is distorted and brief. It’s a very important document and needs a detailed organised format with schedules that display working under applicable tax provisions. Do ensure to see rebates and the tax benefits that currently avaialble, a) for that age company or b) businesses in that industry C ) companies operating in that zone.

To prepare your accounts for corporate tax, begin by familiarizing yourself with the relevant tax laws and regulations. This knowledge will enable you to create an accurate record of your financial transactions, which is essential for complying with corporate tax requirements. Next, ensure that your books are always up to date. By maintaining accurate and organized financial records, you can easily implement tax laws and streamline the process of preparing your accounts for taxation purposes. Additionally, it's highly recommended that you consult a professional tax advisor. Their expertise will help verify that your accounting methods are in line with current legislation while optimizing your overall tax situation.

Appointing tax experts in practice to perform gap assessment is best way to organise the financial records to be a tax compliant. Gap assessment report can help in: 1. Identify the current accounting practices, business structure and changes required. 2. Financial statements analysis and changes required on account balance level, additional disclosures to be added. 3. Review of tax losses carried forward and utilizing to minimize tax liabilities. 4. Transfer pricing regulations applicability and compliance.

You must organize and Maintain meticulous records: Document all financial transactions, including income, expenses, assets, and liabilities, using a reliable accounting system.

Financial records should be aligned tax laws by considering: 1. Review the transitional provisions explained in the tax laws and adjust the opening balances of financial records. 2. Check the timing of revenue recognition 3. Eligibility to claim depreciation, amortization 4. List down deductible expense, non-deductible expense, exempt income, and create separate accounting ledgers. 5. Provision for expected credit losses in line with IFRS 9 and treatment prescribed in tax law. 6. Review of tax credits and plan for its utilization. 7. Impact of International Accounting Standards (IAS) - 12 Income Taxes in terms of deferred tax assets and deferred tax liabilities.

Financial statements should prepare using applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). Accounting framework also undergo amendments, so one should be updated with new amendments and any introduction of new standards. While preparing, ensure that they are prepared based on the fundamental accounting assumption. - Going concern - Consistency - Accrual Business also needs to consider other accounting concepts like matching concepts, prudence, substance over form.

To determine taxable income and tax liability, we have to reconcile to accounting records by adjusting it based on the treatment prescribed by tax laws. This reconciliation can be done as: Taxable income = Accounting profit +Non-deductible expense - Deductible expense - Exempt income + Receipts considered as income as per tax laws. Tax liability = Taxable income X tax rate(%)