The staff brought back an issue that arose during the balloting phase of the upcoming ED on income taxes. The ballot draft proposed that current tax should be discounted. The staff asked the Board whether the ED should contain guidance on discounting. The Board debated different aspects of discounting current tax, including discount rate and IAS 20 implications.
There seemed to be agreement, where the deferral of payment is allowed by law, discounting was not appropriate. However, if an entity specifically negotiates a payment schedule for its tax liability, discounting would be applicable if material. However, Board members pointed out that this is more akin to settlement of a tax liability, and not in itself a tax issue. It was decided not to address discounting of current tax in the ED.