Question：Which of the following statements is true?
　　A. Deferred tax is a tax based on tax-allowable depreciation.
　　B. Deferred tax is tax attributable to temporary differences.
　　C. Deferred tax is paid at the same time as company tax.
　　D. Deferred tax is tax attributable to permanent differences.
　　The correct answer is:Deferred tax is tax attributable to temporary differences.
　　Deferred tax is based on temporary differences, not permanent differences. It is not tax that has to be paid - it is an accounting adjustment based on an estimate of tax which will be payable in the future.