Obtain calculations of current tax provision and agree:
1 Brought forward balances (e.g. tax written down values) to prior year tax computations
2 The accounting profit and any other relevant figures to the financial statements
Review the reconciliation between accounting profit and taxable profit and investigate any significant or unexpected reconciling items
Agree the calculation of disallowable amounts to supporting documentation and assess the basis on which the assessment has been performed
Review the appropriateness of the treatment taxable or deductible items. Compare to expectations of such items and amounts formed by reviewing prior year submitted tax computations
Check the tax rate has been correctly applied
Review the tax charge reconciliation, agree movements to the tax provision calculation and assess whether figures have been incorrectly netted off
Review appropriateness of any carry back or carry forward of future net tax deductions, operating losses and credits.