THE ROLE AND POSITION OF THE TAX BALANCE IN THE FINANCIAL REPORTING SYSTEM

Abstract

To understand the essence of the tax balance, one must start with the functions of a company within the economy of a country in general. The state demands financial resources from companies based on the profit earned, so each company is interested in minimizing the profit it achieves in the market in order to reduce the tax base upon which the state claims resources. Since the tax balance is a report that shows the amount of taxable profit, i.e., the tax base, the state is interested in its most accurate definition. It is also necessary to present the importance of understanding the tax balance in a way that is acceptable to the company's management, 
especially in economies that are in development, like ours. The paper presents the position of the tax balance within the financial system, the role, and place of the tax balance in the family of other financial statements. It particularly highlights the role of the risks that arise when preparing and controlling the tax balance, as well as the dependence of the tax balance on the form and structure of the company.