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Financial Terms | |
TANs (tax anticipation notes) |
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Definition of TANs (tax anticipation notes)TANs (tax anticipation notes)tax anticipation notes issued by states or municipalities to finance current
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. AnticipationArrangements whereby customers who pay before the final date may be entitled to deduct a 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. BAN (Bank anticipation notes)notes issued by states and municipalities to obtain interim financing for ![]() Before-tax profit marginThe ratio of net income before taxes to net sales. Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Cash flow after interest and taxesNet income plus depreciation. Corporate tax viewThe argument that double (corporate and individual) taxation of equity returns makes 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 Demand master notesShort-term securities that are repayable immediately upon the holder's demand. 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. Documented discount notesCommercial paper backed by normal bank lines plus a letter of credit from a 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 Extendable notesNote the maturity of which can be extended by mutual agreement of the issuer and 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. Money market notesPublicly traded issues that may be collateralized by mortgages and MBSs. Municipal notesShort-term notes issued by municipalities in anticipation of tax receipts, proceeds from a Notes payableAmounts owed by the company that have been formalized by a legal document called a note. NOTES RECEIVABLEnotes receivable are promissory notes that the company has accepted from its debtors. Most promissory notes pay interest. Those that are due within a year are shown under “Current Assets.” Those that mature in more than a year would be listed under “Long-term Assets.” If a note is being Notes receivableAmounts owed to the company that have been formalized by a legal agreement called a note. Notes to the financial statementsA detailed set of notes immediately following the financial statements in 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. Personal tax view (of capital structure)The argument that the difference in personal tax rates between Profit before interest and taxes (PBIT)See EBIT. 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 Project notes (PNs)Project notes are issued by municipalities to finance federally sponsored programs in Proportional TaxA tax taking the same percentage of income regardless of the level of income. Rate anticipation swapsAn exchange of bonds in a portfolio for new bonds that will achieve the target 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 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 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 Tax swapSwapping two similar bonds to receive a tax benefit. Tax-timing optionThe option to sell an asset and claim a loss for tax purposes or not to sell the asset and Taxable acquisitionA merger or consolidation that is not a tax-fee acquisition. The selling shareholders are Taxable incomeGross income less a set of deductions. Taxable IncomeIncome subject to income tax as reported on the tax return. Taxable transactionAny transaction that is not tax-free to the parties involved, such as a taxable acquisition. Treasury notesDebt obligations of the U.S. Treasury that have maturities of more than 2 years but less than 10 years. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |