serhan's avatar
serhan

Feb. 15, 2025

1
Inflation Accounting

Companies with strong equity which generate financial loss due to inflation adjusted accounting, will request to be refunded taxes which they pay for advance-paid corporate income tax as they will not be able to use financial loss in 2025 deriving from inflation adjustment accounting , if they cannot compensate for the tax with last three month profits. In this case, eve though taxpayers / companies request the refunds by offsetting from other taxes , they will be subject to tax auhority inspection.
On the one hand, the paid advance-paid corporate income tax without inflation adjusment loss may create essential financial tax burden for the concerning companies / taxpayers. On the other hand this regulation will be favor of companies / taxpayers making profit deriving from inflation adjustment accounting such as delyaying tax payments.

Corrections

Companies with strong equity which generate financial loss due to inflation adjusted accounting,. They will request to be refunded taxes whichsince they pay for advance-paid corporate income tax as. They pay this, because they will not be able to use financial loss in 2025 deriving fromue to inflation adjustment accounting , if they cannot compensate for the tax with last three month profits.

I am having a hard time understanding this sentence. Breaking it up into smaller more focused sentences would help get your point across clearer! I attempted to break it up here, but I am not an accounting expert, so please adjust as you see fit.

In this case, even though taxpayers / /companies can request the refunds by offsetting from other taxes , they will be subject to tax authority inspection.

On the one hand, the paid advance-paid corporate income tax without inflation adjustment loss may create essentialause financial tax burden for the concerning companies / /taxpayers.

On the other hand, this regulation will be favor ofcould help companies / /taxpayers makinge profit derivinged from inflation adjustment accounting such as delyaying tax payments.

Feedback

Great job! Pay attention to the spacing by your punctuation and be mindful of run-on sentences :)

Companies with strong equity which generated financial loss due to inflation adjusted accounting, will can request to be refundeds of taxes which they pay for advance-paidreviously paid for corporate income tax. They can do this as they will not be able to use financial losses in 2025 derivinged from inflation adjustment accounting , ifunless they cannot compensate for the tax withaxes with their last three month profits.

In this case, even though taxpayers / companies request the refunds by offsetting from other taxes , they will be subject to tax authority inspection.

I think it is clearer to only use 'companies' for these sentences rather than 'taxpayers / companies' unless ordinary individuals can use this tax mitigation strategy.

On the one hand, the paid advance-paid corporate income tax without inflation adjustment loss may create essential financial tax burden for the concerninged companies / taxpayers.

On the other hand this regulation will be favor ofs companies / taxpayers making profit deriving from inflation adjustment accounting such as delyaying tax payments.

Feedback

I'm not sure on the way that these tax practices work, so I did my best to touch up on phrasing and grammar. I think the best thing to make this passage better is to spend more time explaining what these accounting practices are and how they relate to the tax code.

Companies with strong equity which generate financial losses due to inflation adjusted accounting, will request to be refunded taxes which they pay forid in advance-paid corporate income tax as they will not be able to use financialthose losses in 2025 deriving from inflation adjustment accounting , if they cannot compensate for the tax with last three month's profits.

I removed some repetition.

I'm a tax accountant and I do find the sentence a little confusing. They generated a financial loss but will request refund taxes because they can't utilize those losses. If you disallow a loss for tax reporting, your income goes up and you pay more tax, therefore requesting refunds as a direct result of being disallowed a loss doesn't make sense (to me) unless there was some additional nuisance here not being communicated.


In this case, even though taxpayers / companies request the refunds by offsetting from other taxes , they will be subject to tax authority inspection.

On the one hand, the paid advance-paid corporate income tax paid in advance without inflation adjustment loss may create essential financial tax burden for the concerning companies / taxpayers.

It's a little unclear what you mean by "financial tax burden", but I assume this is just the normal tax burden due to the government.

If a corporation makes estimated income tax payments without including those losses, and don't use those losses on the tax filing, there wouldn't be a new tax burden, they would have done it just right.

Also, it'd be very common to hear "The estimated corporate income tax payments calculated without the inflation adjustment loss..."

On the other hand, this regulation will be favor of companies / taxpayers making profit deriving from inflation adjustment accounting such as delyaying tax payments.

Feedback

There might be something I'm missing here, but it seems contradictory where the disallowance of the loss is somehow favorable for their tax burden.

Overall, a very technical and good writing!

serhan's avatar
serhan

Feb. 15, 2025

1

In Turkey, Companies have to update their balance sheet by applying inflation rates. This is called inflation adjustment accounting. The goverment does not allow company to recover some cost from their profit in order to increase tax base. It is normal you dont understand as it is very complicated :) Even some Turkish accountants do not understand it :))

Inflation Accounting


Companies with strong equity which generate financial loss due to inflation adjusted accounting, will request to be refunded taxes which they pay for advance-paid corporate income tax as they will not be able to use financial loss in 2025 deriving from inflation adjustment accounting , if they cannot compensate for the tax with last three month profits.


Companies with strong equity which generate financial losses due to inflation adjusted accounting, will request to be refunded taxes which they pay forid in advance-paid corporate income tax as they will not be able to use financialthose losses in 2025 deriving from inflation adjustment accounting , if they cannot compensate for the tax with last three month's profits.

I removed some repetition. I'm a tax accountant and I do find the sentence a little confusing. They generated a financial loss but will request refund taxes because they can't utilize those losses. If you disallow a loss for tax reporting, your income goes up and you pay more tax, therefore requesting refunds as a direct result of being disallowed a loss doesn't make sense (to me) unless there was some additional nuisance here not being communicated.

Companies with strong equity which generated financial loss due to inflation adjusted accounting, will can request to be refundeds of taxes which they pay for advance-paidreviously paid for corporate income tax. They can do this as they will not be able to use financial losses in 2025 derivinged from inflation adjustment accounting , ifunless they cannot compensate for the tax withaxes with their last three month profits.

Companies with strong equity which generate financial loss due to inflation adjusted accounting,. They will request to be refunded taxes whichsince they pay for advance-paid corporate income tax as. They pay this, because they will not be able to use financial loss in 2025 deriving fromue to inflation adjustment accounting , if they cannot compensate for the tax with last three month profits.

I am having a hard time understanding this sentence. Breaking it up into smaller more focused sentences would help get your point across clearer! I attempted to break it up here, but I am not an accounting expert, so please adjust as you see fit.

In this case, eve though taxpayers / companies request the refunds by offsetting from other taxes , they will be subject to tax auhority inspection.


In this case, even though taxpayers / companies request the refunds by offsetting from other taxes , they will be subject to tax authority inspection.

In this case, even though taxpayers / companies request the refunds by offsetting from other taxes , they will be subject to tax authority inspection.

I think it is clearer to only use 'companies' for these sentences rather than 'taxpayers / companies' unless ordinary individuals can use this tax mitigation strategy.

In this case, even though taxpayers / /companies can request the refunds by offsetting from other taxes , they will be subject to tax authority inspection.

On the one hand, the paid advance-paid corporate income tax without inflation adjusment loss may create essential financial tax burden for the concerning companies / taxpayers.


On the one hand, the paid advance-paid corporate income tax paid in advance without inflation adjustment loss may create essential financial tax burden for the concerning companies / taxpayers.

It's a little unclear what you mean by "financial tax burden", but I assume this is just the normal tax burden due to the government. If a corporation makes estimated income tax payments without including those losses, and don't use those losses on the tax filing, there wouldn't be a new tax burden, they would have done it just right. Also, it'd be very common to hear "The estimated corporate income tax payments calculated without the inflation adjustment loss..."

On the one hand, the paid advance-paid corporate income tax without inflation adjustment loss may create essential financial tax burden for the concerninged companies / taxpayers.

On the one hand, the paid advance-paid corporate income tax without inflation adjustment loss may create essentialause financial tax burden for the concerning companies / /taxpayers.

On the other hand this regulation will be favor of companies / taxpayers making profit deriving from inflation adjustment accounting such as delyaying tax payments.


On the other hand, this regulation will be favor of companies / taxpayers making profit deriving from inflation adjustment accounting such as delyaying tax payments.

On the other hand this regulation will be favor ofs companies / taxpayers making profit deriving from inflation adjustment accounting such as delyaying tax payments.

On the other hand, this regulation will be favor ofcould help companies / /taxpayers makinge profit derivinged from inflation adjustment accounting such as delyaying tax payments.

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