Tax credit and Tax reconciliation: Difference between pages

Revision as of 13:14, 2 October 2014

Accounting.

A quantified explanation of the difference between:

The reported tax charge (or credit) in financial statements; and
The standard rate of corporation tax applied to the reported accounting profit (or loss).

In this context item 2. above is sometimes known as the 'expected tax charge'.

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+''Accounting''.
-A reduction in a tax liability, directly reducing the net amount of tax payable.
+A quantified explanation of the difference between:
-For example, the tax credit under a tax 'imputation system' which wholly or partially imputes to the shareholders some of the corporation tax paid by companies on the income out of which dividends are paid.
+# The reported tax charge (or credit) in financial statements; and
+# The standard rate of corporation tax applied to the reported accounting profit (or loss).
-.
+In this context item 2. above is sometimes known as the 'expected tax charge'.
-Less commonly, a smaller indirect reduction in a tax liability, by way of a deduction from the net taxable profits.
-.
-''UK personal tax''.
-A payment from the UK tax authorities to an individual with childcare responsibilities, low income, or both.
 == See also ==
-* [[Credit]]
+* [[Effective tax rate]]
-* [[Credit relief]]
+* [[Reconciliation]]
-* [[Deductions]]
+* [[Tax computation]]
-* [[Dividend]]
-* [[Expense relief]]
-* [[Foreign tax credit]]
-* [[Imputation system]]
-* [[Income Tax]]
-* [[Tax relief]]
 [[Category:Accounting,_tax_and_regulation]]