Doubtful debt allowance
Overview
This sheet is designed to analyse the tax treatment in respect of the various doubtful debts within the computation.
Completing the Sheets
Where you have identified amounts you want to be treated as doubtful debts within the balance sheet, you should analyse these from the
Doubtful debt allowance
sheet that needs to be developed.There are two disclosure sections in the Doubtful debt allowance sheet, these are
IFRS applied (s11(j)(ii))
and IFRS not applied (s11(j)(ii))
. Add rows in each section for each doubtful debt you would like to analyse. An allowance percentage must be selected to calculate the tax allowance per line. The total allowances for each section, as well as the prior period allowances, will be shown on the correct lines in the Adjustment of profit (A) schedule.Taxpayers may request a directive from SARS for an increased doubtful debt allowance percentage not exceeding 85%. The cell SARS-approved weighted average rate can be used to enter the doubtful debt percentage allowed by SARS.
The
Reconciliation to Balance Sheet
section discloses the lines from the balance sheet that comes from the trial balance. The total from this reconciliation section will be compared to the total amount of doubtful debts disclosed in this schedule.note
The
Doubtful debt allowance
and Loss allowance in respect of impaired debt
sheet can also be created in the consolidated computations. The total doubtful debts from each section and allowance % from the subsidiary computations will be shown in the consolidation file under the applicable entity columns.