A comprehensive U.S. legislation that repeals the Foreign Sales Corporation/Extraterritorial Income regime and enacts a variety of tax-related changes to boost domestic job creation.
Bed and Breakfasting refers to a tax strategy where a shareholder sells a holding and buys it back the next day to realize a loss for tax purposes. However, legislative changes have rendered this practice obsolete for shares due to stricter time requirements.
An Early Repayment Tax Clause is a provision in a loan agreement that allows the borrower to repay the loan early if changes in relevant tax legislation increase the amount of interest payable.
A concession made by HM Revenue and Customs (HMRC) to taxpayers, usually followed in practice but not specified in the tax legislation.
The Multistate Tax Commission (MTC) is an intergovernmental state tax agency that works to promote cooperation and standardization in tax legislation among multiple states across the U.S.
Partial exemption in VAT refers to limitations imposed by tax legislation on the input tax a taxable person can claim when they make a mix of taxable and exempt supplies.
In tax law, plant and machinery refer to the equipment required to operate a business, qualifying for capital allowances which facilitate tax deductions on business investments in these assets.
Understanding the distinctions between professional income and trade income, especially in the context of taxation, essential for accurate financial reporting.
Statutory total income refers to the aggregate amount of income that is subject to taxation according to the relevant laws and regulations. It encompasses total income from various sources such as salaries, business income, capital gains, and other categories defined by tax legislation.
A person who makes a series of significant financial gifts to a charity, impacting the tax treatment of transactions between the donor and the charity.
The tax code refers to the body of tax law applicable in a country, within which tax legislation is codified rather than laid down by statute. Understanding the nuances of the tax code is essential for both individuals and businesses to ensure compliance with tax obligations.
Tax planning involves the strategic structuring of a taxpayer's financial activities and affairs in accordance with relevant tax legislation to minimize tax liability. It is a legal and ethical means of reducing the overall charge to tax.
The Tax Reform Act of 1986 (TRA 1986) represents the most comprehensive tax legislation since the onset of World War II. It aimed to ensure that individuals with equal incomes paid equal taxes, minimized the role of tax incentives in addressing social and economic issues, and primarily used taxes to generate revenues.
The means by which taxes are raised and collected in accordance with tax legislation.
Denoting an amount that can be deducted from income or profits, in accordance with the tax legislation, before establishing the amount of income or profits that is subject to tax.
A tax-effective procedure is one that aligns with tax legislation and leads to a reduction in the tax burden, offering financial benefits through strategic planning.
A taxable person includes individuals, partnerships, limited companies, clubs, associations, or charities as defined by value-added tax (VAT) legislation. These entities are responsible for charging VAT on taxable supplies made in the course of conducting their business.
