I can't seem to be able to grasp why in the Question 1 on Drucinex Sp. z o.o.
item (5) The financial revenue consists of interest on a loan granted to another (unrelated) company. The opening and closing balances on the interest receivable account for 2013 were PLN 40,000 (ob) and PLN 210,000 (cb) respectively.
is treated as an amount lowering the tax
Is it because I should understand this amount as accured but not yet paid, hence the exclusion?
While in the Question 6 on Lutownica Sp. z o.o. (Lutownica)
(6) Financial revenue represents the interest income received by Lutownica on a loan granted to another (unrelated) company. The interest receivable account balance on 1 January 2014 was PLN 70,000 and on 31 December 2014 was PLN 190,000.
it is stated that the interest income (is) received by Lutownica and it's too been excluded:
Interest received (190,000 – 70,000) 120,000
Why is that? I'm a bit confused.
OK, I think I've just figured it all out.
Since this is a interest receivable account and when closing balance is higher than opening balance it means these are in fact interest that have been accrued to-date but not yet received, so have to be excluded from the taxable income since tax is paid on amounts received, not accrued.
However, when closing balance is lower than the opening balance, it means the interest must have been received (same as accounts receivable gets credited when a customer pays off our invoice and the bank account is debited respectvely at the same time) and that's why interest received have to be added back to the income increasing the taxable income effectively.
Hope this will come in handy for those facing similar pickle.
Correct me if I'm wrong of course.