We are excited to announce a significant update to TaxProof, with regards to the per Line-item tracking of deferred tax assets and liabilities on the recognition/non-recognition sheet
Traditionally, the recognition / non-recognition sheet grouped the deferred tax assets and liabilities by category. This could, in some cases, complicate the understanding of which specific items are non-recognized, especially when multiple items within a category are partially non-recognized.
To streamline this process and enhance clarity, TaxProof now allows non-recognition tracking on a per-item basis. This update ensures that each temporary difference is individually highlighted, providing a transparent view that aligns with best practices in financial reporting.
![TaxProof_deferred taxes](https://tax-model.com/wp-content/uploads/image-16.png)
For continuity, we have maintained the existing categorization for closed TaxPacks, while open TaxPacks will automatically transition to the new detailed, item-level tracking. We have ensured that all previously entered data is securely preserved and remains readily accessible. Updated TaxPacks now feature a notification message and a link to retrieve previously entered values, ensuring smooth continuity and ease of access.
![TaxProof](https://tax-model.com/wp-content/uploads/image-17.png)
This feature lays the groundwork for upcoming functionalities, such as the ability to assign specific tax rates to each temporary difference and accurately calculate deferred taxes.