Please study the 14 key vocabulary term below. Then continue to the activities
- 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."