BUAC 758A

Taxation has certain characteristics that set it apart from other expenses moreover, it sets a different treatment, in particular, (a) tax payments are not made in exchange for goods or services specific to the business and (b) the business has no say in whether or not the payments are to be made. In essence, the government is a stakeholder in the success of any business within its territory that is why it takes taxes as a participation of the results of the business operations. Technically, it is the stakeholder given first priority. Thus, a tax in substance is not an expense but a distribution of wealth. Although it is viewed this way, accounting for taxes does not take this "distribution view." Accounting for income tax is accounting for it as an expense. Deferred Taxation is the reconciliation mechanism adapted by International Financial reporting standards and FASB to recognize the tax effects of transaction between periods. The analytical areas to be covered in this class include: (1) Data Analysis and Visualization of current public tax database, and (2) Decision making and analysis under uncertainty.