Unit 9 Vocabulary: Taxes I

Noun (thing)
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UK
Anti-avoidance legislation
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UK
the laws which govern the correct payment of taxes
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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."
Noun (thing)
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UK
Capital gains tax
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UK
the tax on the increase of value of a capital asset which is then sold
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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."
Noun (person)
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UK
CEO (chief executive officer)
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UK
the highest rank in a company
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UK
"The CEO decided to hire a freelance tax advisor to help solve the problem."
Noun (thing)
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UK
Consumption tax
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UK
the duty which is levied on the sale or purchase of goods
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UK
"The American system of consumption tax in the form of sales tax is much easier to calculate than the European system of VAT."
Noun (thing)
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UK
Corporation tax
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UK
the tax which is paid on the earnings of a corporation, or entity being treated as a corporation
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UK
"In America the corporation tax rate varies from 15% to 35% depending on the level of earnings."
Verb (infinitive)
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UK
Defer
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UK
put off or postpone to a later date
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UK
"The company accountant deferred the tax due until the start of next year."
Verb (infinitive)
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UK
Liquidate
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UK
convert into cash
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UK
"The firm liquidated 50% of their fleet to raise funds for the investment."
Verb (infinitive)
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UK
Minimize
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UK
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."
Noun (thing)
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UK
Non-inventory asset
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UK
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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UK
"The auditors studied the non-inventory assets and found that two of the company cars were missing."
Noun (thing)
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UK
Obliged to
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UK
required or compelled to do something
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UK
"In most countries employees are obliged to pay national insurance."
Verb (infinitive)
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UK
Offset
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UK
to charge one account against another
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UK
"The profits for this quarter more than offset the losses from last quarter, so we are making a profit for the year."
Proper noun (thing)
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UK
PAYE
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UK
the system of payroll in the UK, by which employers pay all employees
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UK
"The payroll clerk uses a computerized PAYE system to submit all payroll records to the tax office."
Noun (thing)
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UK
Tax credit
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UK
an amount of money that a taxpayer is able to subtract from the amount that they owe to the government
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UK
"The company received a $45,000 tax credit for investing in solar panels for the new property."
Noun (thing)
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UK
Taxable earnings
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UK
the gross profit of a company or individual on which tax is due
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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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