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