9-1-2009 | EFRAG calls for candidates for a PAAinE Advisory Group being set up on Accounting for Income Tax

A new PAAinE (Pro-active Accounting Activities in Europe) project on Accounting for Income Tax has started and a pan-European advisory group is being set up to support the work. EFRAG is therefore launching a call for nominations for the panel. Please write to info@efrag.org by 30 January 2009.

A new PAAinE (Pro-active Accounting Activities in Europe) project on Accounting for Tax has commenced.  As part of the arrangements for the project, a pan-European advisory panel is being set up to support the work, and EFRAG is now seeking nominations for membership of that panel. The project, which is being led by the UK and German standard-setters (the ASB and DRSC), will consider the issues arising from accounting for the tax effects of transactions and other events. It is envisaged that the project will not simply produce an inventory of concerns and note possible solutions, but will develop a discussion paper that will set out the case for and against various proposals and set out proposals that can be presented to the IASB as the basis for a fundamental review of IAS 12 (and its successor IFRS).  The aim is to identify the proposals that will secure the greatest improvement to financial reporting that is attainable.  As such, the intention is that the project will consider the financial reporting of income tax from first principles, rather than being bound by existing requirements. The project will focus on income tax, although in due course assessments may need to be made at a jurisdictional level whether the principles and arguments developed in this project apply to other taxes levied on entities and whether they apply directly or by analogy. Two advisory panels will support the work of the project leaders: • The Tax Advisory Panel (or TAP) comprising mainly experts from a variety of backgrounds from the Boards’ constituents in Germany and the UK. This has already been established. • A pan-European Income Tax Panel (EITP) whose role will be to ensure that the wider European perspective is reflected in the work on the project.  EFRAG is now inviting nominations for membership of the EITP.  The EITP (and the TAP) will operate broadly as follows: • Their roles will be to provide advice to the Boards in the project. However, while the Boards will have regard to the advice provided by the panels, the final recommendations will be for the Boards to determine. EITP members will contribute on all aspects of the project, particularly the technical aspects. • In order to ensure the widest possible participation whilst keeping face-to-face meetings manageable, the membership of the EITP might include ‘corresponding members’. Corresponding members will receive all papers for EITP meetings and are invited to share their views on them. The staff may also seek views from corresponding members on specific issues. However, corresponding members are not expected to attend meetings. • EITP meetings will usually take place in either Berlin or London, although meetings might also take place in other locations within Europe.  Approximately four meetings will be held a year. In addition to face-to-face meetings, the EITP will conduct some its business via email and conference calls to ensure members’ time is used efficiently. • EITP members will be expected to bear their own travel and other costs in participating in the EITP.  Appointments to the EITP are personal, and therefore not transferable. EFRAG might also wish to consult with EITP members on other tax accounting matters including for example the work the IASB is currently carrying out on a revised IAS 12. Nominations for membership of the EITP are now being invited from persons who can demonstrate strong expert knowledge on taxation matters and financial reporting within Europe that is relevant to accounting for income tax.  EFRAG welcomes nominations from all backgrounds, including preparers, tax consultants, auditors, users and academics.  As the project leaders are keen to ensure that the information needs of users are fully taken into account in the project, nominations from users of financial statements would be particularly welcome.  Nominations can be sent by the candidates themselves or by organisations on their behalf.  If you wish to nominate someone or yourself, please write to EFRAG (Ms. Nathalie Saintmard, Secretariat, info@efrag.org) by 30 January 2009 including a CV and other relevant details.  If you require further information or have any questions about the project, please contact: - Mario Abela (Project Director, ASB UK) m.abela@frc-asb.org - Kirsten Davids (Technical Director, DRSC – Germany) davids@drsc.de or - Nadja Jehle (Project Director, DRSC – Germany) jehle@drsc.de