Tax proof and intercompany operations
Posted: 02 Sep 2021, 11:40
Hi guys,
I'd like to ask one idiot question :
Company A and Company B belong to Groupe A.
Company A recorded a sell of 100€ to company B
The P&L of FY21 of Company A is : Revenue : 100, current Income Tax (30%) -30 and net result 70.
The P&L of FY21 of Company B is : Charges : -100, net result -100.
at the group level, the intercompany operations are eliminated, the consolidated statement is the following : Income tax : -30, net result -30.
the tax proof of the consolidated statements would be :
profit before tax : 0
Theorical rate : 30%
Theorical income tax : 0
????????
Current income tax : -30
I'm never seen a category named intercompany elimination in any of the tax proofs.
WHat's your thought? what I did wrong?
Thanks
I'd like to ask one idiot question :
Company A and Company B belong to Groupe A.
Company A recorded a sell of 100€ to company B
The P&L of FY21 of Company A is : Revenue : 100, current Income Tax (30%) -30 and net result 70.
The P&L of FY21 of Company B is : Charges : -100, net result -100.
at the group level, the intercompany operations are eliminated, the consolidated statement is the following : Income tax : -30, net result -30.
the tax proof of the consolidated statements would be :
profit before tax : 0
Theorical rate : 30%
Theorical income tax : 0
????????
Current income tax : -30
I'm never seen a category named intercompany elimination in any of the tax proofs.
WHat's your thought? what I did wrong?
Thanks