The tax payment appearing in the statement of cash flows of a company reflects:

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The tax payment appearing in the statement of cash flows of a company reflects last year's tax liability (due to the lag in payment to tax office). This is because companies pay taxes on profits earned in the previous year, there is a lag in the payment of taxes, and therefore the tax payment appearing in the statement of cash flows refers to the taxes paid for the previous year.

The Tax Payment Appearing in the Statement of Cash Flows