Unit 9: Vocabulary

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