The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Deferred tax is an accounting practice used when a company owes a tax liability. Instead of paying this at that current time, the company becomes responsible for settling it at a point in the future.

Deferred tax definition

Deferred tax is an accounting practice used when a company owes a tax liability. Instead of paying this at that current time, the company becomes responsible for settling it at a point in the future.

This is usually caused by an inconsistency in a company’s balance sheet that occurs because of a variation between accounting practices and tax regulations. Occasionally, this will result in a company’s taxable income and income before tax figures differing. This creates a deferred tax liability.

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