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Accrued Taxes

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Accrued Taxes
The taxes assessed on a company, either on its earnings or on the value of its property, but which it has not yet paid. If the company does not pay the accrued taxes in full by the specified date, it may owe interest and penalties. Accrued taxes are listed as a liability on the company's balance sheet.


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He said accrued taxes and premiums owed to the tax administration would be restructured, noting that the arrangement did not come before the Economy Coordination Council yet.
While the law allows a deduction for accrued taxes, a contested liability is not accrued because it does not meet the requirements of the all-events test for current recognition.
Partners subject to such direct claims bear the economic risk of loss for the accrued taxes and, therefore, may be required to contribute money to the partnership or make a direct payment to satisfy the tax obligation.
 
 
 
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