Tax Planning Strategy 160 | Customer Disputed Amounts
For businesses operating on an accruals basis, income that is subject to a client dispute may be deferred until the dispute is settled. The disputed income should be recorded in the financials as a liability, and only recorded as income when the dispute is finalized.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2