Unit 9: Taxes I

Anti-avoidance legislation

the laws which govern the correct payment of taxes

Capital gains tax

the tax on the increase of the value of a capital asset which is then sold

Chief Executive Officer

the highest rank in a company

Consumption tax

the duty which is levied on the sale or purchase of goods

Corporation tax

the tax which is paid on the earnings of a corporation, or entity being treated as a corporation

Defer

put off or postpone to a later date

Liquidate

convert into cash

Minimize

try to make as small or little as possible

Non-inventory asset

any capital asset which is retained by the company and not likely to be turned into cash within one year under normal trading conditions

obliged to

to have an obligation to do something

Offset

place over against; to balance; as, to offset one account or charge against another

PAYE

the system of payroll in the UK, by which employers pay all employees

statutory

of, or relating to a legal statute

Tax credit

an amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government

Taxable earnings

the gross profit of a company or individual on which tax is due