Finance & Accounting / Tax
Effective Tax Rate ETR
The share of pre-tax profit a company records as income tax, which is almost never the cash it actually sends to tax authorities, nor the statutory rate.
The fork, why two teams get different numbers
Three rates wear the "tax rate" label.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 740 (Income Taxes) · IAS 12 · SEC MD&A guidance on tax rate reconciliation