Tax basis balance sheet

Overview

The tax basis balance sheet in TaxLab focuses only on the balance sheet accounts in a trial balance. It shows the total of the carrying amount, future taxable and future deductible amounts that go into calculating the tax base of the balance sheet.

Access the tax basis balance sheet

From the entity tax year summary, in the navigation bar select Reports > Tax basis balance sheet.

How the tax basis balance sheet works

The tax base of the balance sheet is calculated from the amounts in the balance sheet accounts in the trial balance, combined with the workpapers attached to them. The columns on the tax basis balance sheet display the following:

• Carrying amount: The total amount of the balance sheet accounts in the trial balance.
• Future taxable and future deductible: Totals from relevant workpapers, such as the temporary difference workpaper, showing expected future tax effects.
• Tax base: The calculated tax value of the balance sheet accounts, based on tax adjustments and future deductions.

ℹ️ Info: Selecting an amount in any column will expand the totals to show a detailed view of what account the figures come from.

Selecting the Export button exports the expanded report to Microsoft Excel.

Troubleshooting

Fixed asset balances

The tax basis balance sheet is not able to pull through the tax book value from the Capex register in the entity. If capex balances differ for accounting and tax purposes,  this limitation may impact the accuracy of the tax base. We recommend using the Tax basis balance sheet report in conjunction with the Deferred tax proof report and other tax accounting reports.

Related articles

Set up tax account movements

Add a temporary difference workpaper

Deferred tax proof