So we know that the tax base includes 2 parts, tax base of assets and tax base of liabilities.
The tax base of assets is the value of an asset that is deductible for tax purpose in the future, and the tax base of liabilities is the value of a liability that is taxable for tax purpose in the future(Or so-called, can contribute to the future taxable income).
But by this definition, Account receivable, as an asset on the BS, should be part of the tax base of liabilities as it contributes to future taxable income(when cash is received, recognized as revenue in tax rule), and account payable, as a liability on the BS, should be part of the tax base of assets as it contributes to the future deductible(when the cash is paid, recognised as cost in tax rule).
I am really confused. What am I missing here? And for the formula DTL/DLA = (Carry value-Tax base)*Tax rate. Is the tax base the net value of tax base of assets - tax base of liabilities? If the formula gives a positive result, we have a DTL, if gives a negative number we have a DTA, is that correct?