Unit #9 Taxes

Below is a list of the vocabulary needed to pass this unit with a good score.

Anti-avoidance legislation
The laws which govern the correct payment of taxes.
"There is strict anti-avoidance legislation in most countries which means that failure to pay the full amount of
due taxes is punishable by law."

Capital gains tax

The tax on the increase of value of a capital asset which is then sold.
"The accountant advised the owner to retain the property for 12 months before selling so as to reduce the
amount of capital gains tax due."

CEO 2 (Chief Executive Officer 2)

The highest rank in a company
"The CEO decided to hire a freelance tax advisor to help solve the problem."

Consumption tax
The duty which is levied on the sale or purchase of goods.
"The American system of consumption tax in the form of sales tax is much easier to calculate than the European
system of VAT."

Corporation tax
The tax which is paid on the earnings of a corporation, or entity being treated as a corporation.
"In America the corporation tax rate varies from 15% to 35% depending on the level of earnings."

defer
Put off or postpone to a later date.
"The company accountant deferred the tax due until the start of next year."

Liquidate
Convert into cash.
"The firm liquidated 50% of their fleet to raise funds for the investment."

Minimize
Try to make as small or little as possible.
"The accountant minimized the tax liability and saved the company thousands of dollars."

Non-inventory asset
Any capital asset which is retained by the company and not likely to be turned into cash within one year under
normal trading conditions.
"When the auditors studied the non-inventory assets and found that two of the company cars were missing."
Obliged to
To have an obligation to do something
"In most countries employees are obliged to pay national insurance."

Offset
Place over against; to balance; as, to offset one account or charge against another.
"The profits for this quarter more than offset the losses from last quarter, so we are making a profit for the year."

PAYE
The system of payroll in the UK, by which employers pay all employees.
"The payroll clerk uses a computerized PAYE system to submit all payroll records to the tax office."

Statutory
Of, or relating to a legal statute.
"The statutory sick pay in the UK is just over 60 pounds a week, but most companies pay more than that."

Tax credit
An amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government
"The company received a $45,000 tax credit for investing in solar panels for the new property."

Taxable earnings
The gross profit of a company or individual on which tax is due.
"As Johns taxable earnings for the year were under the lower level bracket he didn’t need to pay any tax."

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