by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Lindahl Equilibrium?A Lindahl tax is a form of taxation that is calculated according to the amount of satisfaction or benefit individuals receive from using an additional unit of the public good. So, the optimal level for producing a public good is the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Lookback Period?Lookback period is the timeframe which tax authorities use to investigate either a company pays the employment tax or not. This tax is levied on the accurate depositing schedule. This time period starts on 1st July and ends on 30th June of...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Income Basket?The US tax code defines an Income Basket as a taxable source of income from either active, passive, or portfolio gains. For e.g., monthly salary would be taxed under the Active Income Basket, while rent from a property would be taxed under the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Internal Revenue Code?The US code of statutes Title 26 is commonly referred to as The International Revenues Code (IRC) or Tax code. It is simply the consolidation of the US permanent laws. This group of laws touch on incomes, gifts, sales, payroll, and...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Controlled Foreign Corporation?In the United States, a CFC is a foreign corporation in which US Shareholders own more than 50% of its value. The shareholders are required to report the foreign income earned, which is subject to US taxation.How Does a...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Ad Valorem Equivalent (AVE)?Ad valorem tax is a type of tax which is based on the property value of the properties such as real estate or personal property. The most common tax of this type is the real estate tax. This tax sometimes applies to other tax...
