Vocabulary

Study the following vocabulary.

Taxes

income tax – a tax on net personal income

corporate tax – a tax on the profits made by a company / corporation

capital gains tax – a tax on the profits from the sale of assets

value-added tax – a flat tax added to the price of goods and services (Commonly written VAT)

progressive tax – a tax that increases as the amount of taxable earnings increases

tax deduction – a payment or expense that may be used to lower the amount of tax paid

tax evasion – avoiding paying taxes by submitting false information to the tax authorities

tax shelter – an investment that allows you to avoid or delay paying taxes

tax haven – a country where taxes are low or non-existent

loophole – a mistake or technicality in tax law that allows you to legally avoid paying taxes