tax liability

  

Definition

Debt to a government incurred by a tax payer as accrued or assessed taxes. Tax liability is shown as a short-term liability in financial statements, and takes precedence over all other liabilities.

Use tax liability in a sentence

  • You must know the tax liability of your business at all times so you don't get a big surprise when the time comes to settle up.

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  • I did not wanna turn eighteen and get a job because I knew the next step was tax liability and I did not want any part of that.

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  • We had no tax liability after incorporating which was a very positive event in our business' history. It was a success.

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