As a tax professional, understanding the key components associated with taxation is crucial for ensuring accurate financial reporting and compliance. Accounting profit represents the profit reported in financial statements, while tax profit is the profit calculated based on tax laws. The variance between these figures leads to current tax expense, reflecting taxes payable for the period. Additionally, deferred tax assets/liabilities arise from temporary differences in reporting between accounting and tax purposes, impacting future tax obligations. Comprehending these components is vital for assessing tax liabilities, identifying potential risks, and ensuring adherence to regulations, thereby safeguarding financial integrity and minimizing tax-related discrepancies.

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