contestada

The accounting treatment of uncertain tax positions is determined through the application of a two-step process. Which of the following statements is not true regarding this process?
A) To meet the recognition threshold, it must be more likely than not that the taxpayer will maintain its tax position in a dispute with taxing authorities.
B) A tax benefit related to an uncertain tax position is measured as the largest amount of tax benefit that is greater than 50% likely of being realized.
C) A tax benefit related to an uncertain tax position will only be recognized if it is more likely than not to meet the recognition threshold
D) In determining whether the recognition threshold is met, the company must assume that audit by the taxing authority will take place

Respuesta :

varshamittal029

The statement which is not true about uncertain tax position is :- In determining whether the recognition threshold is met, the company must assume that audit by the taxing authority will take place.

A tax treatment for which it is uncertain whether the applicable tax authorities (including the courts) will accept the treatment in accordance with local tax legislation is known as an uncertain tax situation.

Tax positions that are unknown could emerge, for instance, if there is doubt about

  • whether a certain type of income should be included in the taxable income of an entity;
  • whether a certain amount is tax-deductible;
  • if a certain transfer pricing methodology will be accepted by the tax authorities and the courts;
  • What is the proper application of the tax code in light of a recent tax court ruling;
  • varying interpretations of the law by tax authorities, taxpayers, and tax experts;
  • differences in how the appropriate tax authorities and the taxpayer/tax advisors understand a tax treaty, such as how much of a sum is subject to withholding taxes.

The requirements for interest and penalties linked with uncertain tax positions are not covered by IFRIC 23.

To know more about Uncertain tax position

https://brainly.com/question/15371993

#SPJ4

Otras preguntas