UNIT 10 - TAXATION

income tax

the tax people pay on their wages and salaries (and business profits in the US)

corporation tax/corporate income tax

tax paid by companies - the tax on business profits (in the UK)

progressive tax

a tax that is levied at a higher rate on higher incomes (opposite to “flat rate of tax“)

indirect tax

a tax paid on the sales of g&s (property, sale transactions, imports), which are not paid directly but they are passed on to the taxpayers by an increase in his/her expenses

a regressive tax

a type of tax that is assessed regardless of income, in which low and high-income earners pay the same dollar amount. This kind of tax is a burden on low-income earners than high-income earners, for whom the same dollar amount equates to a much larger percentage of total income earned

VAT - value-added tax

a tax on g&s, collected at each stage of production, excluding the already-taxed costs from previous stages

stamp duty

a tax on specific transactions, this tax is mandatory

capital gains tax

a tax on the profits made form the sales of assets such as businesses, rented houses and shares

capital transfer tax

a tax paid on any property, money and other assets that are given to sb

inheritance tax

(in the UK) tax on gifts to family members over a certain value/ the assets os the person who has died (used to be “death duties“)

wealth tax

the annual tax imposed on people’s fortunes such as houses,…

tax avoidance

reducing the amount of tax you pay to a legal minimum

tax evasion

making false declarations to the tax authority and is obviously illegal

tax loss

bringing forward capital expenditure (on new factories, machines,…) so that at the end of the year all the profits have been used up is known as making a….

money laundering

the situation where criminal multinationals tend to pass money through a series of companies in very complicated transactions to disguise its origin from tax inspectors and the police

loophole

a small mistake or exception in a tax law which allows people to avoid paying st

tax authority

official body responsible for levying and collecting taxes

direct tax

tax that is paid directly by the tax remmiter to the relevant tax authourity and include income and property taxes

double-taxation

taxation of both company’s profits and shareholders’ income (dividends)

a flat-rate tax

proportional tax, imposed at a fixed percentage irrespective of the amount of the tax rate and accrued income for the entire year

tax bracket

impose tax obligations in a progressive manner

tax deductible expenses

expenses that are deducted form taxabke income 

tax exempted

(esp. in the case of VAT) no tax is levied on a particular tax base

tax haven

low-tax country/zone

tax refund

reimbursement of the tax due to tax reliefs

tax

is a determined unilaterally, non-repayable, mandatory money payment collected by public authorities in accordance with tax law

tax remmiter

does not have to be the same person as the taxpayer, is the person who actually transfers due tax to the competent tax authority

taxpayer

a person or entity whose income is taxable

a tax refund

means that particular activities are not taxable/ is money received back from a tax return - the amount you recieved from the gov bcs you paid taxes exceeded your computed tax liability

a tax rebate

refers to the relief you can claim to reduce tax burden; or the amount of tax liability that you, as a taxpayer, dont have to pay

tax base

the greater the amount, the higher the tax is assessed

tax return

documents filled with tax authorities stating the amount of due tax

the federal tax law

an array of laws that imposes a tax on the income of individuals, corporations, estates and trusts

a tax

could be viewed as involuntary contribution required by law to finance the function of gov