Deferred taxes - Reporting package support

Deferred tax instructions represent separate sections in reporting packages received from headquarters. Different schedules, forms and calculations make deferred tax processing a complex exercise for which sufficient resources are not always available.

In order to meet deferred tax reporting requirements, we provide operational support and:

• review or interpret instructions in the reporting packages to complete deferred tax reports in the required manner;
• prepare balance sheet data as a basis for deferred tax calculations;
• complete deferred tax forms in the reporting packages together with company officials so that such tasks can be performed without assistance in future;
• review deferred tax reports completed by the companies and reconcile differences where necessary;
• consider the following items during the review of deferred taxes:
  • effects of IFRS, US GAAP and Hungarian accounting differences;
  • effects on income taxes;
  • the effective tax rate reconciliation;
  • proper allocation of deferred tax assets and liabilities.

Most common complications are the following:

• difficulties to understand instructions in the reporting packages;
• deferred tax forms are not always clear;
• limited support from headquarters;
• lack of adequate skills.