Financial Vocaburaries - Tax and Audit 2

1. Audit : In an audit, a tax agency examines and evaluates the financial statements of a person or company. An audit may reveal mistakes or inconsistencies that result in tax penalties or legal action.

 

2. Compliance : If a person or company follows tax laws correctly, then they are in compliance with those laws.

  Ex] Our company spends a lot of time and money on making sure we are in full compliance with federal tax low.

 

3. Exemptions [ɪg^|zempʃn] : Government may give an exemption from tax on some income, meaning that income is not taxed. Exemptions are often give to organizations, such as charities and schools.  [감면]

  Ex] In many tax systems, property that is inherited or received as a gift is given a tax exemption.

 

4. Tax Credits : A tax credit reduces the amount of tax that a person or company must pay. The government may give credits to businesses in certain industries, like oil exploration, to encourage investment.  [세액공제]

  Ex] The state government grants our company a tax credit for employing people formerly on welfare.

 

5. Tax Break : A tax break, which includes credits and exemptions, reduces a person or company's taxes. Companies may be given tax breaks for specific expenses, invenstments, or activities, such as manufacturing or research. [세금우대]

  Ex] Many people are upset that large corporations receive greater tax breaks from the goverment than individuals.

 

6. Tax Shelter : Tax shelters, which may be legal or illegal, are methods that reduce a company's taxes. Tax shelter include offshore companies, retirement plans, & investment incentives. [조세회피]

  Ex] With very low tax rates, Bermuda and the Caymans are polular tax shelters for U.S. companies.

 

7. Tax Rebate : When the goverment gives a tax rebate, it returns tax money to people or companies. [세금환급]

  Ex] We have already paid more tax than we actually owe, so this year we are getting a big tax rebate.