deferred tax


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Related to deferred tax: Deferred Income Tax, Deferred tax expense

Deferred Income Tax

On a balance sheet, a tax that a company will owe on its income, but that has not yet been assessed. Because of differences between tax regulations and the Generally Accepted Accounting Principles, income may be recognized on a balance sheet for accounting purposes, but not for tax purposes. However, that income will eventually be recognized for tax purposes and income tax will then be assessed. This tax is called deferred income tax, and is recorded as a liability on the balance sheet.

deferred tax

a PROVISION which a company may make to reflect the difference between CORPORATION TAX actually payable (based on CAPITAL ALLOWANCES), and the tax which would have been payable if the charge had been based solely on accounting profits (reflecting DEPRECIATION rates applied).
References in periodicals archive ?
In this respect in 2008 resulted a taxable temporary difference that will lead to the recording of a debt concerning the deferred tax of 3,200 lei.
Five banks will be affected most by the tax cut, due to their large amount of deferred tax assets deriving from their loss in previous years.
The amount of the net operating loss must be multiplied by the tax rate in order to determine the amount of the deferred tax asset.
109, Accounting for Income Taxes, requires a reduction to the deferred tax asset by a valuation allowance if it is more likely than not that the deferred tax asset will not be realized.
The farm accountant makes a deferred tax adjustment while preparing market-based financial statements to report the tax effects of market value adjustments.
A deferred tax asset -- a tax receivable that a bank is legally allowed to book on its balance sheet as part of its capital -- arises from loan-loss provisions it puts up against loans to troubled borrowers in a given fiscal period, which tax authorities refuse to recognize as tax-deductible expenses for the period.
Easily produce the tax schedules needed to support tax returns -- Since this same information is generated for calculating the effective tax rate and deferred taxes, the tax solution should enhance the workflow by providing this information for purposes of supporting tax return filings.
One exception to this occurs when firms are required by SFAS 109 to disclose the valuation allowance for deferred tax assets on their balance sheets from 1992 onwards.
This paper investigates whether Brazilian listed firms make use of net deferred tax to intentionally disclose higher losses, in line with a big bath strategy.
A breakdown of the amount revealed that the tax liability was originally N35.076bn, but a deferred tax asset of N1.46bn was deducted from the amount.