What Can We Infer About a Firm's Taxable Income from its Financial Statements?

Posted: 20 Dec 2003

See all articles by Michelle Hanlon

Michelle Hanlon

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Multiple version iconThere are 2 versions of this paper

Abstract

In this paper I review and describe the income tax disclosures currently required in firms' financial statements. I discuss many of the problems with trying to estimate a firm's actual tax liabilities and taxable income from the income tax expense and disclosures to the financial statements. In doing so, I reveal the conditions under which taxable income may most accurately be estimated from financial statements as well as those conditions which make this task difficult, if not impossible.

Keywords: taxable income, financial statements

JEL Classification: M41, M45, H25

Suggested Citation

Hanlon, Michelle, What Can We Infer About a Firm's Taxable Income from its Financial Statements?. National Tax Journal, Vol. 56, No. 4, pp. 831-864, December 2003. Available at SSRN: https://ssrn.com/abstract=478325

Michelle Hanlon (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

100 Main Street
E62-668
Cambridge, MA 02142
United States
617-253-9849 (Phone)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
1,871
PlumX Metrics