MFRS

Insights into IC Interpretation 23

Effective for financial years beginning on or after 1 January 2019, IC Interpretation 23 ‘Uncertainty Over Income Tax Treatments’ (‘the Interpretation’) requires entities to consider the potential for adverse tax determinations being made by taxing authorities while under a hypothetical tax review – and record a liability (and expense) where such a finding is considered “probable”. Many entities may not experience a financial impact as a result of this, but the Interpretation remains applicable and certain disclosures may be appropriate. 

This publication provides an overview of IC Interpretation 23, explaining the relevant definitions, the initial tax assessment and subsequent measurement, together with some practical application and examples.


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