The following information relates to Terril Co as at 31 December 2004:
|
|
Carrying Value EUR
|
Tax Base EUR
|
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
200,000
|
175,000
|
|
Receivables
|
|
|
|
Trade receivables(*)
|
50,000
|
|
|
Interest receivables
|
1,000
|
|
|
Payables
|
|
|
|
Fine
|
10,000
|
|
|
Interest Payable
|
2,000
|
|
(*) The trade receivables balance in the account is made up of the following amounts:
|
|
EUR
|
|
Trade receivables
|
55,000
|
|
Doubtful Debt provision
|
(5,000)
|
|
|
50,000
|
Further information:
1. The deferred tax balance as at 1 January 2004 was EUR 1,200.
2. Interest is taxed on a cash basis.
3. Provisions for doubtful debts are not deductible for tax purposes.
4. Fines are not tax deductible. Calculate the deferred tax provision which is required at 31 December 2004 and the charge for income taxes to the income statement for 2004.