Taxes, Tax-related vocabulary 4

READY TO PRACTICE? LET’S GO!

Match each definition with the letter of one of the following:
a - form
b - exempt
c - depreciation
d - unauthorized
e - audit
f - tax dispute
g - disclosure
h - dividends
i - self-employment income
j - tax evasion

1. the release of tax information to another party → ✓

2. a formal examination of financial records or a tax return → ✓

3. the illegal avoidance of taxes that are owed → ✓

4. not required to pay a particular tax → ✓

5. company profits distributed to shareholders → ✓

6. not officially permitted or approved → ✓

7. money earned by working for oneself → ✓

8. a document with fields to complete → ✓

9. the decrease in an asset's value over time → ✓

10. a disagreement over how much tax is owed → ✓

📚 Important Words to Know
taxable income — the portion of income on which taxes are calculated, after allowable deductions and exemptions
withholding tax — income tax deducted directly from an employee's wages before they receive payment
tax deduction — an expense that reduces taxable income, thereby lowering the amount of tax owed
tax credit — a direct reduction in the amount of tax owed, more valuable than a deduction of the same amount
VAT (Value Added Tax) — a consumption tax levied at each stage of production or distribution, passed on to the final consumer
corporate tax — a tax levied on a company's profits by the government
audit (tax) — an official examination of an individual's or company's tax return by a government authority
capital gains tax — a tax on the profit from selling an asset such as shares, real estate, or a business
tax haven — a jurisdiction with very low tax rates that attracts businesses and individuals seeking to reduce tax liability
double taxation — the taxation of the same income twice, often applied when multinational companies operate across jurisdictions