Tax Reserve
/ˈtæks rɪˌzɜrv/
Definitions
- (n.) An accounting provision set aside by a taxpayer or company to cover anticipated tax liabilities that are uncertain or disputed.
The corporation established a tax reserve to prepare for potential future tax assessments.
Forms
- tax reserve
- tax reserves
Related terms
See also
Commentary
Tax reserves are commonly used in financial reporting to ensure compliance with accounting principles and tax laws when tax outcomes are uncertain.
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.