Sporter Enterprises Has Incurred a Tax Loss in the Current

Multiple Choice

Sporter Enterprises has incurred a tax loss in the current period. Under tax law, which of the following statements is not correct?

A) A deferred tax asset can be recognised if it is probable that Sporter will earn taxable income in the future.
B) Assuming all relevant tax laws have been adhered to, Sporter can carry the loss forward to reduce taxable income in future periods.
C) A deferred tax liability is created, as Sporter will have to pay tax on taxable income in the future.
D) Sporter cannot carry the loss forward as a deferred tax asset if it is probable that future taxable income will not be earned.