CORPORATION TAX Meaning and
Definition
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Corporation tax refers to a form of tax levied on the profits earned by companies or corporations. It is a direct tax imposed by the government on the earnings of incorporated entities in order to generate revenue for the state. The tax is usually calculated on the net profits or income of the company after deducting any allowable expenses or deductions.
The purpose of corporation tax is to enable the government to collect a percentage of the profits generated by businesses, thus contributing to the overall revenue of the country. It is an important source of income for the government and is levied on both domestic and foreign companies operating within the jurisdiction.
The rate of corporation tax varies among different countries and is often subject to change based on economic and fiscal policies. Governments may offer tax incentives or deductions to encourage investment and economic growth. Some countries may have different tax rates for small and large corporations, while others have a uniform rate for all sizes of businesses.
Corporation tax is typically calculated annually and companies are required to submit their financial statements and supporting documents for assessment and verification. Non-compliance or deliberate evasion of corporation tax may result in penalties, fines, or legal consequences for the business.
Common Misspellings for CORPORATION TAX
- xorporation tax
- vorporation tax
- forporation tax
- dorporation tax
- cirporation tax
- ckrporation tax
- clrporation tax
- cprporation tax
- c0rporation tax
- c9rporation tax
- coeporation tax
- codporation tax
- cofporation tax
- cotporation tax
- co5poration tax
- co4poration tax
- corooration tax
- corloration tax
- cor-oration tax
- cor0oration tax
Etymology of CORPORATION TAX
The etymology of the word "corporation tax" can be understood by breaking down the origins of its constituent parts:
1. Corporation: The term "corporation" comes from the Latin word "corpus", which means "body". It originally referred to a group of people who formed a legal entity, distinct from its owners, to carry out specific activities. Over time, the term evolved to represent a legally recognized entity with rights and liabilities that can operate separately from its shareholders.
2. Tax: The term "tax" finds its roots in the Latin word "taxare", which means "to assess" or "to estimate". It refers to a compulsory financial charge imposed by a government on individuals or organizations to fund public services or projects.
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