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What is Deffered Tax?
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Answer Posted / vinay
A tax liability that a company owes and does not pay at
that current point, although it will be responsible for
paying it at some point in the future. This is often caused
by a difference in a company's balance sheet, due to the
differences between accounting practices and tax
regulations. Occasionally, a company will have a difference
in their taxable income and income before tax due to these
differences, resulting in a deferred tax liability.
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