Tax reconciliation

Accounting.

A quantified explanation of the difference between:

1. The reported tax charge (or credit) in financial statements; and
2. 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'.

See also

• Deferred tax
• Effective tax rate
• Reconciliation
• Tax
• Tax computation