2.60 What are the different tax treatment options in the “Entry table” and how do these affect the tax computations?

2.60 1

A. The different options and their effect on the tax computations are explained in the table here below:

Option	Effect on the financial statements
Group interest - Map number “6.T.7. 2”	With this option “Group interest income” is treated either as trading income or as interest and is subject to Defence tax contribution which is the default option
Interest income for investment companies - Map numbers “3.Q.4. 2” and "3.Q.4. 2. 1”	With this option “Interest income” for investment companies is treated either as trading income which is the default option or as interest and is subject to Defence tax contribution
Stock write off - Map number "5.T.1.16"	With this option “Stock write off” may be treated as an allowable expense which is the default option or as a non allowable expense for taxation purposes
Bad debts written off - Map number "5.T.1.17"	With this option “Bad debts written off” may be treated as an allowable expense which is the default option or as a non allowable expense for taxation purposes
Social cohesion fund - Map numbers "4.R.1. 16", "4.R.3. 5", "4.R.5.17", "4.R.6.17", "4.R.7.17", "5.T.1. 4" and "5.T.2. 8"	With this option “Social cohesion fund contribution” may be treated as an allowable expense or as a non-allowable expense for taxation purposes. For tax years up to 2011 the default option is to treat this expense as non-allowable and there after the default option is to treat it as allowable.
Unrealised exchange difference - Map number "5.T.1.16"	With this option “Unrealised exchange difference” may be treated as an allowable expense or as a non allowable expense for taxation purposes which is the default option
Accounting period NOT coinciding with calendar year	This checkbox is selected when the accounting period is for a year not ending 31 December and enables a special apportionment section in the tax computation schedule where the user may allocate the taxable profits/losses of the accounting period to the relevant calendar years of assessment. This automatically updates the tax reconciliation part of the “Taxation” note to the financial statements and the tax losses calculation cross referenced to the same note.
Accounting period exceeding 12 months	This checkbox is selected when the accounting period is in excess of 12 months ending 31 December and enables a special apportionment section in the tax computation schedule where the user may allocate the taxable profits/losses of the accounting period to the relevant calendar years of assessment.