A practice-oriented model for the transfer of tax losses in non-financial enterprises using artificial intelligence
A practice-oriented model for the transfer of tax losses in non-financial enterprises using artificial intelligence

Summary/Abstract: This paper proposes a practice-oriented model for the application of tax loss carry-forward in non-financial sector enterprises, emphasizing the potential of artificial intelligence (AI) as a tool to ensure compliance with the fundamental accounting principle of true and fair presentation of an entity’s financial and asset position. Grounded in the provisions of the Corporate Income Tax Act (CITA), the model enables the carry-forward of tax losses for up to five years, contingent upon achieving a positive taxable financial result and the consistent exercise of this right. Through a practical case study, the study demonstrates the implementation of the model, which includes automated tax loss carry-forward, calculation of tax effects, and accounting for deferred tax assets in accordance with the requirements of International Accounting Standard (IAS) 12 Income Taxes and National Accounting Standard (NAS) 12 Income Taxes. The integration of AI facilitates informed managerial decision-making aimed at minimizing tax liabilities by providing predictive financial outcomes, identifying and correcting accounting errors, and analyzing tax planning scenarios. The model ensures adherence to regulatory requirements, contributing to the sustainable development of enterprises in a competitive economic environment.

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