Tax Liability
/ˈtæks laɪəˌbɪlɪti/
Definitions
- (n.) The legal obligation of an individual or entity to pay taxes to a governmental authority based on income, property, transactions, or other taxable events.
The company's tax liability increased significantly after the audit revealed unreported income.
Related terms
See also
Commentary
Tax liability specifically denotes the quantifiable amount owed as a result of tax law obligations, distinct from general financial liabilities.
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.