Date Added: Feb 2013
Corporate income tax is one of the largest expense lines on the consolidated income statement. The tax expense often represents as much as 40% of total profit. Even larger tax numbers lurk on the balance sheet. Yet, the systems in use to calculate the tax provision in most companies continue to be a disconnected array of point solutions and spreadsheets that lack the transparency warranted by such material numbers. Not surprisingly, the accounting for income tax has been an area of increasing scrutiny both internally and externally to corporate finance and tax.