Tax Calculations workpaper (TCP)

How the TCP workpaper auto-populates Net Profit, handles non-deductible add-backs from NDE and ENT, and generates the tax provision journal.

The Tax Calculations (TCP) workpaper is where the taxable profit and associated tax expense are calculated. It pulls data from the Trial Balance and multiple other workpapers to produce the final taxable income figure.

Data extraction

Net Profit or Loss per Accounts

Auto-picked from the Trial Balance based on Account Type (Revenue, Other Income, Direct Costs, Expense, Overhead).

Users need to deselect the following accounts from Net Profit or Loss per Accounts. To do this, click the highlighted icon then click Edit:

  • Shareholder Salary (Non-Pay As You Earn (PAYE))
  • Beneficiaries' Distribution
  • Look-Through Company (LTC) Distribution
  • Tax Expense

Add back non-deductible expenses (auto-populated)

  • Entertainment Non-Deductible: Balance picked from Trial Balance for the account code mapped under Entertainment Non-Deductible in Chart of Accounts (CoA) Mapping.
  • Other Non-Deductible Expenses: Auto-picked from the Non-Deductible (NDE) workpaper.
  • Penalties and Fines: Auto-picked from the Non-Deductible (NDE) workpaper.

The remaining add-back fields need to be entered manually.

Deduct non-taxable income

To be entered manually.

Timing differences

Some highlighted information may auto-populate. If not, it must be entered manually by the user. Any other information must be entered manually if required. Yellow fields require manual entry.

Auto-triggered journals

There is an auto-triggered journal for tax provision in this workpaper.

Related workpapers

  • Non-Deductible Expense (NDE): Provides Penalties and Fines, and Other Non-Deductible Expenses.
  • Entertainment (ENT): Relates to Entertainment Non-Deductible figure.
  • Taxation Due (ITD): Pulls tax payable from this workpaper.
  • Imputation Credit Account (ICA) to Retained Earnings Reconciliation (IRE): Pulls Tax Losses Carried Forward from this workpaper.

How to access

  1. Go to Jobs and open the relevant job.
  2. Click the Workpapers Icon or navigate to Results then Workpapers.
  3. Select TCP on the Workpapers Dashboard.