deferred tax liability


A tax liability that a company owes and does not pay at that current point, although it will be responsible for paying it at some point in the future. This is often caused by a difference in a company's balance sheet, due to the differences between accounting practices and tax regulations. Occasionally, a company will have a difference in their taxable income and income before tax due to these differences, resulting in a deferred tax liability.

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You should try and see if your accountants can find a way to get you a good deferred tax liability.

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They were able to have a deferred tax liability and pay it off at a point I'm the future without additional interest.

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DEFERRED TAX LIABILITY An account on a company's balance sheet that is a result of temporary differences between the company's accounting and tax carrying values, the anticipated and enacted income tax rate, and estimated taxes payable for the current year. This liability may or may not be realized during any given year, which makes the deferred status appropriate.

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deferred credit interperiod income tax allocation