Taxes are recovered at the rate at which it was originally paid.The tax rate in the year the loss occurs is not relevant.

Name: Taxes are recovered at the rate at which it was originally paid.The tax rate in the year the loss occurs is not relevant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The tax rate relevant for recovering taxes on a loss is typically the rate in the year the loss occurs, not the rate at which it was originally paid. Tax benefits from losses are generally calculated based on current tax laws and rates.

Taxes Are Recovered at the Rate at Which It Was