by Ekrem Duman | Jun 14, 2026 | Accounting, Tax Accounting
⚡ TL;DRA tax provision has two layers: current tax (what you owe this year on taxable income) and deferred tax (the future consequences of temporary differences). You build it by starting with book pre-tax income, adjusting for permanent and temporary differences to...
by Ekrem Duman | Jun 14, 2026 | Accounting, Tax Accounting
⚡ TL;DRFinancial accounting reports performance to investors under GAAP or IFRS, while tax accounting calculates what you owe under the tax code. The same transaction can be recognized at different times in each system, creating book-tax differences that flow into...
by Ekrem Duman | May 30, 2026 | Accounting, Tax Accounting
⚡ TL;DRDeferred tax bridges the gap between accounting profit and taxable profit. Temporary differences — items recognized in different periods for books versus tax — create deferred tax liabilities (tax owed later) or deferred tax assets (tax saved later). You...
by Ekrem Duman | Jan 4, 2025 | Accounting, Tax Accounting, Tax Management
The idea of “fairness” in taxation is often debated, and one principle at the heart of this debate is the ability-to-pay.1 This concept suggests that individuals should contribute to funding public services based on their capacity to do so. Simply put,...
