Corporate Taxes – Flashcards
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Tax
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The money the government collects from people and business to finance the running of the country.
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Corporate income tax
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Companies pay them as a percentage of their profits.
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Internal revenue service (IRS)
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A agency of the U.S. government that collects taxes and enforces tax law.
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Tax return
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Official statements of income and taxes owed.
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To file a return
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Submission of the tax statements to the government for review.
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Fiscal year
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One-year period a company uses to calculate their annual financial statements and taxes.
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To declare
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When a company files a tax return, it must officially state (therm for that), what if has earned during the past year.
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Capital gains
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Profits earned from selling an asset, such as a building, or an investment, such as shares.
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Capital Gain tax
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Tax on capital gain.
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Tax rate
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Percentage of tax that a company must pay to government.
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Progressive tax rate system
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System in which tax rates are higher for companies with bigger profit.
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Audit
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Tax agency examines and evaluates the finacial statements of a person or company.
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Compliance
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If a person or a company follows tax laws correctly, then they are (therm) with those laws.
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Tax exemptions
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Government may give an (therm) form tax on some income, meaning that income is not taxed.
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Tax credit
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Reduces the amount of tax that a person or company must pay.
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Tax break
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Includes credits and exemptions, reduces a person or company's taxes.
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Tax shelter
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Methodes to reduce a company's taxes (legal or illegal). Include offshore companies, retirement plans, and investment incentives.
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Tax Rebate
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When government returns tax money to people or companies.
