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What is deferred tax liability and deferred tax asset, and why might need to be created?

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Question added by Deleted user
Date Posted: 2015/01/05
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Deferred tax liabilities generally arise where tax relief is provided in advance of an accounting expense/unpaid liabilities, or income is accrued but not taxed until received

Deferred tax assets generally arise where tax relief is provided after an expense is deducted for accounting purposes

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