Taxable profits

Taxable profits are the profits on which a business calculates its corporation tax charge for a year. Note that the definition of taxable profits is not the same as accounting profits before tax. The reason for this is that the business has considerable flexibility in the way it calculates its accounting profit before tax. As a result, the Inland Revenue has different rules in some areas for the calculation of taxable profits.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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