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Why would a company's statutory tax rate be different from its GAAP tax rate as well as its cash tax rate?



538 day(s) ago

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TaxesandScotch
I have no idea what a "cash tax rate" is. The primary reason for differences between GAAP tax LIABILITY and actual tax liability is that certain income and expense items are recognized in different years for financial reporting purposes that for tax purposes. GAAP attempts to recognize tax liability in the same year as it recognizes income, even if this differs from the year the IRS recognizes it.

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Question Title Why would a company's statutory tax rate be different from its GAAP tax rate as well as its cash tax rate?
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