Tax Liability

This query is : Resolved

Report Abuse Follow Query Ask a Query

A D - Loving Life

A D - Loving Life (Querist)
Follow

13 January 2009 What does tax liability means>?

Prashant

Prashant (Expert)
Follow

14 January 2009 The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base.