![]() |
|
Financial Terms | |
Corporate tax view |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: payroll, tax advisor, money, financial advisor, investment, finance, business, stock trading, |
Definition of Corporate tax viewCorporate tax viewThe argument that double (corporate and individual) taxation of equity returns makes
Related Terms:After-tax profit marginThe ratio of net income to net sales. After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Agency cost viewThe argument that specifies that the various agency costs create a complex environment in Analytical ReviewThe process of attempting to infer the presence of potential problems Asymmetric taxesA situation wherein participants in a transaction have different net tax rates. Average tax ratetaxes as a fraction of income; total taxes divided by total taxable income. average tax rateTotal taxes owed divided by total income. ![]() Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy viewThe argument that expected bankruptcy costs preclude firms from being financed entirely Before-tax profit marginThe ratio of net income before taxes to net sales. Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit CommitteesA committee formed in response to SEC chairman Arthur Levitt's initiative to improve the financial Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's Cash flow after interest and taxesNet income plus depreciation. Corporate acquisitionThe acquisition of one firm by anther firm. Corporate bondsDebt obligations issued by corporations. ![]() Corporate charterA legal document creating a corporation. Corporate financeOne of the three areas of the discipline of finance. It deals with the operation of the firm Corporate financial managementThe application of financial principals within a corporation to create and Corporate financial planningFinancial planning conducted by a firm that encompasses preparation of both Corporate processing floatThe time that elapses between receipt of payment from a customer and the Corporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to Current Income Tax ExpenseThat portion of the total income tax provision that is based on Current Tax Payment Act of 1943A federal Act requiring employers to withhold income taxes from employee pay. Deferred Income Tax ExpenseThat portion of the total income tax provision that is the result Deferred Tax AssetFuture tax benefit that results from (1) the origination of a temporary difference Deferred Tax LiabilityFuture tax obligation that results from the origination of a temporary ![]() Deferred taxesA non-cash expense that provides a source of free cash flow. Amount allocated during the Depreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. depreciation tax shieldReduction in taxes attributable to the depreciation allowance. Double-tax agreementAgreement between two countries that taxes paid abroad can be offset against earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Effective Tax RateThe total tax provision divided by pretax book income from continuing Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax Federal Unemployment Tax Act (FUTA)A federal Act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a Foreign tax creditHome country credit against domestic income tax for foreign taxes paid on foreign Imputation tax systemArrangement by which investors who receive a dividend also receive a tax credit for INCOME TAXWhat the business paid to the IRS. Income taxA government tax on the income earned by an individual or corporation. Income Tax ExpenseSee income tax provision. Income Tax ProvisionThe expense deduction from pretax book income reported on the Indirect Taxestaxes paid by consumers when they buy goods and services. A sales tax is an example. Inflation TaxThe loss in purchasing power due to inflation eroding the real value of financial assets such as cash. Interest equalization taxtax on foreign investment by residents of the U.S. which was abolished in 1974. Interest tax shieldThe reduction in income taxes that results from the tax-deductibility of interest payments. interest tax shieldtax savings resulting from deductibility of interest payments. Investment tax creditProportion of new capital investment that can be used to reduce a company's tax bill Investment Tax CreditA reduction in taxes offered to firms to induce them to increase investment spending. Limited-tax general obligation bondA general obligation bond that is limited as to revenue sources. Margin Tax RateThe tax rate applicable to the last unit of income. Marginal tax rateThe tax rate that would have to be paid on any additional dollars of taxable income earned. marginal tax rateAdditional taxes owed per dollar of additional income. Marginal Tax RatePercent of an increase in income paid in tax. Material review boardA company committee typically comprising members representing Payroll tax expenseThe amount of tax associated with salaries that an employer pays to governments (federal, state, and local). Payroll taxes payableThe amount of payroll taxes owed to the various governments at the end of a period. Pecking-order view (of capital structure)The argument that external financing transaction costs, especially Perfect market view (of capital structure)Analysis of a firm's capital structure decision, which shows the Perfect market view (of dividend policy)Analysis of a decision on dividend policy, in a perfect capital Personal tax view (of capital structure)The argument that the difference in personal tax rates between Profit before interest and taxes (PBIT)See EBIT. Progress reviewA periodic review of a capital investment project to evaluate its continued economic viability. Progressive TaxA tax in which the rich pay a larger percentage of income than the poor. Contrast with regressive tax. Progressive tax systemA tax system wherein the average tax rate increases for some increases in income but Proportional TaxA tax taking the same percentage of income regardless of the level of income. Regressive TaxA tax in which the poor pay a larger percentage of income than the rich. Contrast with progressive tax. Roth IRA. An IRA account whose earnings are not taxable at all under certaincircumstances. Sales TaxA tax levied as a percentage of retail sales. Short-term tax exemptsShort-term securities issued by states, municipalities, local housing agencies, and Signaling view (on dividend policy)The argument that dividend changes are important signals to investors Split-rate tax systemA tax system that taxes retained earnings at a higher rate than earnings that are State Disability TaxA tax charged by selected states to maintain a disability insurance Statutory Tax RateThe income tax rate that is stated in income tax law. It is applied to taxable Taking a viewA London expression for forming an opinion as to where market prices are headed and acting on it. TANs (tax anticipation notes)tax anticipation notes issued by states or municipalities to finance current Tax anticipation bills (TABs)Special bills that the Treasury occasionally issues that mature on corporate tax benefit (of depreciation)the amount of depreciation deductible for tax purposes multiplied by the tax rate; Tax booksSet of books kept by a firm's management for the IRS that follows IRS rules. The stockholder's Tax clawback agreementAn agreement to contribute as equity to a project the value of all previously tax deferralpostponing taxation of an amount until a future date Tax deferral optionThe feature of the U.S. Internal Revenue Code that the capital gains tax on an asset is tax-deferred incomecurrent compensation that is taxed at a future date Tax-deferred retirement plansEmployer-sponsored and other plans that allow contributions and earnings to Tax differential view ( of dividend policy)The view that shareholders prefer capital gains over dividends, tax-exempt incomecurrent compensation that is never taxed Tax-exempt sectorThe municipal bond market where state and local governments raise funds. Bonds issued tax exemptiona tax treatment where income is never subject to income taxation Tax free acquisitionA merger or consolidation in which 1) the acquirer's tax basis in each asset whose Tax havenA nation with a moderate level of taxation and/or liberal tax incentives for undertaking specific Tax Reform Act of 1986A 1986 law involving a major overhaul of the U.S. tax code. Tax-Related Incomes Policy (TIP)tax incentives for labor and business to induce them to conform to wage/price guidelines. Tax shieldThe reduction in income taxes that results from taking an allowable deduction from taxable income. tax shield (of depreciation)the amount of depreciation deductible Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |