Below you can find an example of a quick test on reasonableness income tax:

1)Gross result from the profit and loss account
2) we adjust permanent differences for the period (permanently non-tax deductible expenses are added and non-taxable income is deducted)
3) thus we obtain the "nominal taxation base" to be multiplied by "minus 22%",
4) which generates the tax at nominal rate If the actual tax = tax at the nominal rate, the risk of error is low

The same you will see on the picture on the right hand side.

Want to know more about possible causes of errors that indicate this quick test? You will learn this at our free e-training page - click this link.

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