Tax Aggregation
/ˈtæks əˌɡreɡˈɪˈreɪʃən/
Definitions
- (n.) The practice of combining multiple taxable events or income items for the purpose of calculating overall tax liability.
Tax aggregation allows the taxpayer to offset gains and losses across different transactions.
- (n.) In corporate law, the process of consolidating income and deductions among affiliated entities to determine tax obligations on a combined basis.
The company used tax aggregation to compute the consolidated taxable income of its subsidiaries.
Forms
- tax aggregation
- tax aggregations
Related terms
See also
Commentary
Tax aggregation is a critical concept in tax law for combining income or losses to assess tax liability accurately; drafters should specify the scope of aggregation clearly to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.