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Cash taxes

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Revision as of 10:24, 5 January 2006 by wikademia>Swathikumari (To link the word cash taxes to it's own article.)
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Cash taxes refer to the amount paid in a period towards tax obligations. To arrive at this figure, change in diferred 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.