Unit 9: Vocabulary

Please study the 14 vocabulary terms below. Then press the Mark Complete button to continue.
US
UK
anti-avoidance legislation
the laws which govern the correct payment of taxes
US
UK
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.
US
UK
capital gains tax
the tax on the increase of value of a capital asset which is then sold
US
UK
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.
US
UK
CEO (chief executive officer)
the highest rank in a company
US
UK
The CEO decided to hire a freelance tax advisor to help solve the problem.
US
UK
consumption tax
the duty which is levied on the sale or purchase of goods
US
UK
The American system of consumption tax in the form of sales tax is much easier to calculate than the European system of VAT.
US
UK
corporation tax
the tax which is paid on the earnings of a corporation, or entity being treated as a corporation
US
UK
In America the corporation tax rate varies from 15% to 35% depending on the level of earnings.
US
UK
defer
put off or postpone to a later date
US
UK
The company accountant deferred the tax due until the start of next year.
US
UK
liquidate
convert into cash
US
UK
The firm liquidated 50% of their fleet to raise funds for the investment.
US
UK
minimize
try to make as small or little as possible
US
UK
The accountant minimized the tax liability and saved the company thousands of dollars.
US
UK
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
US
UK
The auditors studied the non-inventory assets and found that two of the company cars were missing.
US
UK
obliged to
to have an obligation to do something
US
UK
In most countries employees are obliged to pay national insurance.
US
UK
offset
to place over against, to serve as a counterbalance for, to charge one account against anothe
US
UK
The profits for this quarter more than offset the losses from last quarter, so we are making a profit for the year.
US
UK
PAYE
the system of payroll in the UK, by which employers pay all employees
US
UK
The payroll clerk uses a computerized PAYE system to submit all payroll records to the tax office.
US
UK
tax credit
an amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government
US
UK
The company received a $45,000 tax credit for investing in solar panels for the new property.
US
UK
taxable earnings
the gross profit of a company or individual on which tax is due
US
UK
As John's taxable earnings for the year were under the lower level bracket he didn’t need to pay any tax.
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