Examlex
A cheat cut involves
Permanent Differences
Differences between taxable income and accounting income that arise due to items recognized in one manner for accounting purposes and in another manner for tax purposes, and they do not reverse over time.
Permanent Differences
Differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting the effective tax rate.
Temporary Differences
Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, leading to deferred tax assets or liabilities.
Taxable Income
Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.
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