Is income tax expense an operating expense?

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Shouldn’t tax be an operating expense? Companies pay tax on the profits they have on their operating activities, right? Is tax operating expense in the cash flows statement?

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score 0 · Answer 1 · 2012-12-02T23:09:02+00:00

Income tax is not included in the operating expenses in the profit and loss as the standards require separate disclosure. They are however included in the operating activities in the cash flow statement as they are part (a result) of the day to day operations (at least up to a point).