Taxable Difference
/ˈtæksəbl ˈdɪfrəns/
Definitions
- (n.) A discrepancy between the carrying amount of an asset or liability in the financial statements and its tax base that will result in taxable amounts in future periods when the asset is recovered or the liability settled.
The company's tax accountant identified a taxable difference arising from accelerated depreciation methods used for accounting versus tax purposes.
Forms
- taxable difference
- taxable differences
Related terms
See also
Commentary
Taxable differences create deferred tax liabilities and are fundamental in accounting for income taxes under standards like IAS 12.
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.