MANAGEMENT

Detailed explanation-1: -Tax liability is the amount of money in the form of tax debt you owe to tax authorities. It is the total amount of tax you are liable to pay to the government.

Detailed explanation-2: -What Is Tax Liability? Tax liability is the payment owed by an individual, business, or other entity to a federal, state, or local tax authority. Generally, you have a tax liability when you earn income or generate profits by selling an investment or other asset.

Detailed explanation-3: -Income tax is an obligation that is to be met. Income tax if paid in advance is an obligation paid in advance that means that you pay in advance before it is actually due. Hence, it is an asset for the company.