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Does transfer of losses using Group relief form have an impact on the ETR computation?

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edited Mar 13, 2024 12:11PM in Tax Reporting 1 comment

Summary:

We have configured the Group Loss relief form and the respective dimensions in the application as per the approach provided. Based on the current approach, the losses transfered are appearing correctly in the Current provision form (as expected).

However, we are faced with a question as follows

  • Where an "Entity A" has a Loss amount coming in "Taxable income before loss" in the Current provision form, and the same has been transfered to another "Entity B" s per the regulatory provisions, the resulted Tax amount for Entity A is 0.
  • However, since the current OOTB structure of the ETR form does not take into regard the Group relief account members, the form still shows an ETR percentage based on the loss amount itself. (Tax Impact of Loss divided by Loss).

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