Deferred tax expense

Deferred tax expense

A non-cash expense that provides a source of free cash
flow. Amount allocated during the period to cover taxliabilities that ha
ve not yet been paid.
Copyright 2012, Campbell R. Harvey. All Rights Reserved.

Deferred Tax Expense

Money that an individual or company owes for taxes but has not yet p
aid. Deferred tax expenses are placed asideand kept until the company
or individual pays taxes, either once per quarter or once per year. De
ferred tax expensesare most common for corporations and indepen
dent
contractors who do not have their taxes deducted from theircash inflo
ws.