Cash taxes: Difference between revisions
wikademia>Swathikumari To link the word cash taxes to it's own article. |
wikademia>Swathikumari No edit summary |
||
| Line 1: | Line 1: | ||
Cash taxes refer to the amount paid in a period towards tax obligations. To arrive at this figure, change in | Cash taxes refer to the amount paid in a period towards tax obligations. To arrive at this figure, change in deferred tax for the period is to be adjusted to the total tax amount. | ||
The reason behind is deferred tax expensed for a period is an amortization but not the cash actually paid. | The reason behind is deferred tax expensed for a period is an amortization but not the cash actually paid. | ||
Revision as of 10:29, 5 January 2006
Cash taxes refer to the amount paid in a period towards tax obligations. To arrive at this figure, change in deferred tax for the period is to be adjusted to the total tax amount.
The reason behind is deferred tax expensed for a period is an amortization but not the cash actually paid.
cash taxes can be deduced as below. Cash taxes = Total taxes incurred - Deferred tax amortized during the period.