Cash taxes
 |
This article is an orphan, as few or no other articles link to it. Please introduce links to this page from other articles related to it. (July 2006) |
 |
This article may not meet the general notability guideline. Please help to establish notability by adding reliable, secondary sources about the topic. If notability cannot be established, the article is likely to be merged or deleted. |
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 actual cash out flow. Cash taxes can be derived as below.
Cash taxes = Total taxes incurred - Deferred tax amortized during the period.