The provision for taxation is a fund kept aside by the company to meet the obligation of taxes. The nature of such provision is current; therefore,...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can a...
A provision is a specific amount which is set aside by any organization in its accounting books for paying off a known liability. Provisions for bad debts, provisions for income taxes, and provisions for depreciation are some examples of the provided definition....
The provision for depreciation is an accounting and a taxation term. Most fixed assets such as plants, equipment and vehicles decline in value over time as they are used and as they age. The provision for depreciation accounts for this by lowering their value each year on financial statements ...
rather than theordinary incometax rate that is applied to investments held for less than a year. In addition, offsetting taxable capital gains with current or past capital losses can reduce the amount of investment profit
Double taxation refers to income taxes paid twice on the same income source. It occurs when income is taxed at both the corporate and personal level, or by two nations.
Prohibitions of tax discrimination have long appeared in constitutions, tax treaties, trade treaties and other sources, but despite their ubiquity little agreement exists as to how such provisions should be interpreted. This has led prior commentators to conclude that tax discrimination is an incoheren...
Non-qualified immediate annuities are purchased with monies which have not enjoyed any tax-sheltered status and for which taxes have already been paid. A part of each monthly payment is considered a return of previously taxed principal and therefore excluded from taxation. The amount excluded from...
In order to understand taxation and to decide on the key issues we must begin by asking two basic questions: what are taxes and why do we need them? We will find that taxes play a much larger role in the economy than the mere raising of revenue. They make possible the provision of ...
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Provisions are funds set aside for specific probable future expenses or other financial impacts such as losses in value. Financial obligations are categorized as provisions when they are likely to affect the company’s finances, but there is uncertainty about their value or timing. ...