Tax computation
From ACT Wiki
A calculation of tax payable by a business or by an individual with more complex tax affairs, usually prepared by the taxpayer or the taxpayer's agent.
Tax computations are normally submitted to the relevant tax authorities as supplementary material supporting a standardised summary tax return, for example a UK Corporation Tax return.
For a business which produces external accounts, the tax computations will commonly include:
- A summary adjustment of the (externally reported) accounting profits, to calculate the taxable profits.
- Additional detail and reconciliations of figures appearing in the accounts.
Sometimes known as a tax comp or tax comps.
