Please study the 14 vocabulary terms below. Then press the Mark Complete button to continue.
- anti-avoidance legislation
- capital gains tax
- CEO (chief executive officer)
- consumption tax
- corporation tax
- defer
- liquidate
- minimize
- non-inventory asset
- obliged to
- offset
- PAYE
- tax credit
- taxable earnings
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The laws which govern the correct payment of taxes.
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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 tax on the increase of value of a capital asset which is then sold.
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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 highest rank in a company.
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The CEO decided to hire a freelance tax advisor to help solve the problem.
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The duty which is levied on the sale or purchase of goods.
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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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The tax which is paid on the earnings of a corporation, or entity being treated as a corporation.
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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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Put off or postpone to a later date.
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The company accountant deferred the tax due until the start of next year.
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Convert into cash.
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The firm liquidated 50% of their fleet to raise funds for the investment.
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Try to make as small or little as possible.
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The accountant minimized the tax liability and saved the company thousands of dollars.
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Any capital asset which is retained by the company and not likely to be turned into cash within one year or less.
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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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Required or compelled to do something.
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In most countries employees are obliged to pay national insurance.
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To charge one account against another.
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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 system of payroll in the UK, by which employers pay all employees.
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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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An amount of money that a taxpayer is able to subtract from the amount that they owe to the government.
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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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The gross profit of a company or individual on which tax is due.
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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.