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Under IFRS, the tax base of an asset is the amount that will be deductible for tax purposes against any taxable economic benefits generated by the asset. If the economic benefits are nontaxable, then an asset's tax base equals its carrying amount
The tax base of a liability is its carrying amount minus any amount related to that liability that will be deductible for tax purposes in the future. If an entity receives revenue in advance, its tax base for the resulting liability will be its carrying amount, less any amount that will not be taxable in the future.
International Accounting Standard12 defines deferred tax assets as “the amounts of income taxes recoverable in future periods in respect of: (a) Deductible temporary differences; (b) The carry forward of unused tax losses; and (c) The carry forward of unused tax credits.”
Raja Meziou gave a complete definition.
Increases in assets increase your taxes, and increases in liabitilies decrease your taxes.
The tax base always does the opposite. A higher tax base for an asset counteracts other asset increases (creating deferred tax asset), and a higher tax base for a liability counteracts other liability increases (creating deferred tax liability).
Tax basis : assets or liabilities is related to the amount of assets or liabilities for tax purposes . Includes expense (income ) tax expense (income ) tax and ongoing expense (income ) tax -deferred :Tax basis The tax basis of the assets is the amount of disposable deduction for tax purposes for any economic benefits derived property be subject to tax when it is to recover the carrying value of the assets . If those were not the economic benefits are subject to tax , the tax basis of assets equivalent to its carrying value then Examples A - showing the cost of the machine a certain amount of (100) and for the purposes of tax has been deducted amount (30) in the current period and prior periods Kahtlak , and the rest of the cost of the machine met for deduction in future periods , either Kahtlakat or by doing the exclusion of the machine. That the revenue derived from using the machine is subject to the tax , and that any gains resulting from the sale of the machine will be taxable , but losses from the sale are subject to the deduction for tax purposes .Here the tax basis of the machine (70) B - showing the benefits listed as a receivable in the amount of (100) . Will also be taxed on a cash basis . Here is the basis of the tax benefits of the city is zero The tax base is the value of the demands listed minus any amount will be capable of being deducted for tax purposes and the respect of those liabilities in future periods . In the case of revenue received in advance , the tax base of the demands of the resulting value is listed , less any amount of the revenue will not be subject to tax in future periods Examples A - include liabilities Accrued expenses traded value of listed (100) . For tax purposes will be deductible expense relating to them on a cash basis . Here is the basis of the tax owed is zero expenses .B - include liabilities traded Interest income received in advance a carrying value (100) .The tax on interest income related to its previously imposed on a cash basis . Here is the basis of tax on interest received in advance is zero. There are some items tax basis , but not recognized as assets and the demands on the balance sheet . For example , while costs are recognized as an expense in determining search accounting profit during the period in which they are incurred by the entity . However, it may not be allowed as a deduction in determining taxable profit ( tax loss ) until a later period . The difference between the tax basis of the costs of research, which is the amount allowed by the tax authorities Castqtaa in future periods , and the carrying value of zero represents a difference a tax deduction temporarily viable and result in deferred tax assets . When the tax base for one of the assets or liabilities unclear directly , it is useful then regarded as the fundamental basis upon which this standard : any entity shall , with certain limited exceptions , to recognize Palmtalib ( assets) Deferred tax when it leads a refund or reimbursement the carrying value of the assets or liabilities to future tax payments larger ( or less ) than is the case if it does not produce any taxes from the recovery or repayment
