Tax Provision
/ˈtæks prəˌvɪʒən/
Definitions
- (n.) A clause or statement in a financial or legal document that sets forth the calculation, treatment, or allocation of tax liabilities or benefits.
The company's annual report included a tax provision detailing its income tax expense for the fiscal year.
Forms
- tax provision
- tax provisions
Related terms
See also
Commentary
Typically found in financial statements and contracts, tax provisions are crucial for compliance and accurate fiscal reporting; clear drafting avoids ambiguity regarding tax responsibilities.
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.