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How is deferred tax liability different from current tax liability?
Wiki User
∙ 9y ago
Current Tax Liability is that tax amount which is actaully payable in current year.
Deffered Tax liability is that amount of tax liability which is created due to difference in net income in income statement and income according to tax authorities.
Wiki User
∙ 9y ago
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Is deferred tax a current liability?
Yes deffered tax liability is created due to difference in taxable income as well as actual income which needs to be adjusted in next fiscal year as it is for only one year that;s why it is current liability.
Why would one need a deferred tax liability?
Deferred tax liability is necessary when a company's balance sheets fail to reflect what they are claiming on their tax returns. This can occur, for example, in cases of deferred payments from customers.
Are all temporary differences that exist at balance date recognised as deferred tax assets or deferred tax liabilities?
yes - either a deferred tax asset (DTA) or a deferred tax liability (DTL).
What are the Journal entries for a sale of subsidiary?
There are several important journal entries for the sale of a subsidiary. These include: Fixed assets, current assets, current liability, deferred tax liability, and goodwill.
Define deferred tax?
Deferred tax is the future tax liability or assets. It could either be tax liability or tax assets totally depending on the temporary difference which means the difference between book value and tax valued.
Is deferred liability a current liability?
Yes deffered tax liability is created due to difference in taxable income as well as actual income which needs to be adjusted in next fiscal year as it is for only one year that;s why it is current liability.
What is the result of interperiod tax allocation is?
interperiod tax allocation results in a deferred tax liability
If future income tax liability is deferred income tax?
If that is what the amount is that you may owe and that is what you want to call it YES it would be your deferred income tax amount.
Can deferred tax asset offset against deferred tax liability?
Yes, but only if the entity has the legal right to settle on a net basis and they are levied by the same taxing authority on the same entity or different entities that intend to realise the asset and settle the liability at the same time.
Are deferred tax assets current assets?
no
Is deferred income tax current asset?
yes
Is deffered tax liability your current liability?
yes
