The article explores how using financial statements can help predict how much money companies will pay in taxes. By analyzing these statements, researchers found that they can make more accurate predictions about future taxable income. This can be useful for policymakers when planning tax laws and for estimating government tax revenues. The study shows that including financial statement data improves predictions by giving timely information and using accruals. By combining predictions from individual companies, overall forecasts of taxable income can be even more precise. The main benefit comes from tax-related information in financial statements.