Permanent differences between income tax per GAAP and income tax per the tax law lead to deferred tax liabilities.

Question

Quizplus · Accepted Answer

Permanent differences between income tax per GAAP and income tax per the tax law do not lead to deferred tax liabilities or assets because they do not reverse over time; instead, they permanently affect the taxable income or tax payable but not the accounting income, or vice versa.

Permanent Differences Between Income Tax Per GAAP and Income Tax