An increase in the expected future income tax rate will result in a reduction in the current period income tax expense if at reporting date the aggregate amount of DTAs is greater that aggregate DTLs.

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An increase in the expected future income tax rate will result in a reduction in the current period income tax expense if the aggregate amount of DTAs (deferred tax assets) is greater than the aggregate amount of DTLs (deferred tax liabilities). This is because a higher future tax rate means that the deferred tax assets will be worth more, while the deferred tax liabilities will be worth less. The net effect will be a reduction in the income tax expense for the current period.

An Increase in the Expected Future Income Tax Rate Will