In the year in which a tax loss is incurred, the tax loss must equal the net loss reported on the company's financial statements.

Question

Quizplus · Accepted Answer

Tax loss and net loss on financial statements can differ due to differences in tax laws and accounting principles. For example, some expenses may be deductible for tax purposes but not recognized as expenses in financial statements, and vice versa.

In the Year in Which a Tax Loss Is Incurred