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Taxes

Profit ratio

One of the fundamental concepts in finance is the return on capital, which measures the profitability of a company in relation to its invested capital or net worth. This ratio is often used in determining tax liabilities and can vary widely between industries and companies. Understanding this metric is crucial for making sound financial decisions and assessing the financial health of a company.

Incidence of tax

When discussing taxes, it is important to understand the concept of tax burden. This refers to the economic impact of taxes on individuals or businesses. It is not necessari...

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Deferred income

Deferred income refers to the money that will be earned at a later time, resulting in a delay in paying taxes. This concept is often applied to investments, where the income...

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Jurisdiction

In the realm of finance, one may come across the term "Tax Jurisdiction" which refers to the power, right, or authority to interpret and apply tax laws or decisions. It is cr...

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Pre-tax profits

Operating profit, also known as earnings before taxes (EBT), is a key measure in finance that reflects a company's financial performance before tax expenses are taken into a...

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