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Tax Liability

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(Querist)
13 January 2009 What does tax liability means>?
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Prashant

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Prashant (Expert)
14 January 2009 The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base.
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