What does current tax refer to according to IAS 12?

Current tax, as defined in IAS 12, refers specifically to the amount of income tax payable by an entity based on its taxable profits for the current reporting period. This concept ties directly into an organization's current financial performance and its corresponding tax obligations. Under IAS 12, current tax is determined using the tax laws enacted or substantively enacted at the end of the reporting period, thereby ensuring that the tax recorded accurately reflects the entity's profits and the immediate economic reality.

This definition encompasses the actual financial liabilities that arise from the application of tax rates to the taxable income generated during the reporting period. Therefore, it is concerned specifically with amounts owed to the tax authorities for the profits that have already been recognized, distinguishing it from estimates or future obligations that may come into play for subsequent periods or different types of tax assets and liabilities.

The other options do not accurately capture this definition: they might refer to future liabilities or receivables rather than the current tax obligation grounded in the results of the present accounting period. Understanding current tax in this way is vital for accurately presenting tax-related financial information in accordance with international accounting standards.