Deferred Tax Assets are created whenever taxes are paid on revenue transactions that will be reflected in future financial statement income.

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Deferred Tax Assets (DTAs) arise due to differences between accounting and tax rules. Whenever taxes are paid on revenue transactions that will be reflected in future financial statement income, DTAs are created as the amount of tax paid exceeds the tax liability calculated using the accounting standard. These DTAs can be used to offset future tax liabilities and reduce the amount of taxes owed.

Deferred Tax Assets Are Created Whenever Taxes Are Paid on Revenue