Declare

Definition

In general: To announce something formally or officially.

Finance: To authorize the payment of a dividend on a specified date, which is an act carried out by the board of directors of a corporation. Once declared, the dividend becomes an obligation of the issuing corporation.

Import: To make a statement to a customs officer about the goods being imported into a country.

Taxation: To include income on a tax return.

Examples

General Use:
- “The government declared a state of emergency following the natural disaster.”
Finance:
- “The company declared a quarterly dividend of $0.50 per share payable to its shareholders.”
Import:
- “Travelers must declare all purchased goods to the customs officials upon re-entering the country.”
Taxation:
- “Individuals must declare all sources of income when filing their annual tax returns.”

Frequently Asked Questions (FAQs)

Q1: What happens once a dividend is declared by a company’s board of directors?

Once a dividend is declared, it becomes a liability on the company’s balance sheet and must be paid to shareholders on the specified date.

Q2: Do I need to declare gifts received from abroad to customs?

Yes, gifts from abroad typically need to be declared to customs, although they may be subject to different duty treatments depending on their value and the country’s regulations.

Q3: If I forgot to declare income on my tax return, what should I do?

You should file an amended tax return as soon as possible to include the omitted income and pay any additional taxes owed to avoid penalties.

Q4: When importing goods, what information must be declared to customs?

Typically, you must declare the nature of the goods, their value, the country of origin, and any applicable tariffs.

Q5: Can a declared dividend be revoked?

Generally, once a dividend is declared, it cannot be unilaterally revoked by the company and must be paid to the shareholders as announced.

Dividend: A payment made by a corporation to its shareholders, usually as a distribution of earnings.
Customs: The authorities or procedures involved in the process of controlling goods entering or leaving a country.
Income Tax Return: A form submitted to a taxing authority that reports income, expenses, and other pertinent tax information.
Board of Directors: A group of individuals elected to represent shareholders and oversee the activities and direction of a company.

Online References to Online Resources

Suggested Books for Further Studies

“Accounting Made Simple: Accounting Explained in 100 Pages or Less” by Mike Piper
“Principles of Corporate Finance” by Richard A. Brealey, Stewart C. Myers, and Franklin Allen
“Kiss, Bow, or Shake Hands: The Bestselling Guide to Doing Business in More Than 60 Countries” by Terri Morrison and Wayne A. Conaway
“Taxpayer Advocate Book: Understanding Taxes” by The IRS National Taxpayer Advocate

Fundamentals of Declare: Business and Finance Basics Quiz

### What action must the board of directors take for a dividend to become a company obligation? - [ ] Notify shareholders informally - [ ] Publish a press release - [x] Declare the dividend - [ ] Hold a general meeting > **Explanation:** For a dividend to become an obligation, the board of directors must formally declare it. ### What should travelers do when bringing goods back to their home country? - [x] Declare the goods to customs - [ ] Hide the goods - [ ] Avoid declaring unless asked - [ ] Register the goods online > **Explanation:** Travelers must declare goods to customs to comply with legal requirements and potentially pay duties. ### What should you do if you forgot to declare an income stream on your tax return? - [ ] Ignore it - [ ] Wait until the IRS contacts you - [x] File an amended tax return - [ ] Declare it next year > **Explanation:** Filing an amended return is the correct way to fix income reporting errors on a tax return. ### Who oversees the declaration of dividends in a corporation? - [x] The board of directors - [ ] The shareholders - [ ] The company’s CEO - [ ] The CFO > **Explanation:** The declaration of dividends is the responsibility of the board of directors. ### What is involved in the process of declaring goods for import? - [x] Providing information on the nature, value, and origin of goods - [ ] Paying an arbitrary fee - [ ] Delivering a speech - [ ] None of the above > **Explanation:** The import declaration process involves providing detailed information to customs authorities. ### Can a declared dividend be revoked? - [ ] Yes, at any time - [x] Generally, no - [ ] Only with shareholder majority - [ ] Depending on company policy > **Explanation:** Once a dividend is declared, it generally cannot be revoked and must be paid to shareholders. ### What does declaring income on your tax return ensure? - [ ] Avoiding all taxes - [ ] Obtaining a refund - [x] Accurate reporting of earnings for tax purposes - [ ] Hiding income from authorities > **Explanation:** Declaring income ensures accurate reporting for tax liabilities. ### Why is the act of declaring important for both finance and taxation? - [ ] It’s a ceremonial action - [ ] Because it involves legal liabilities - [x] Since it formalizes an obligation - [ ] To impress stakeholders > **Explanation:** Declaring formalizes an obligation, thereby creating legal and financial commitments. ### What typically must be declared at customs during travel? - [ ] Only electronic devices - [x] All goods above a certain value - [ ] Personal clothing - [ ] Nothing unless requested > **Explanation:** All goods above certain value thresholds have to be declared at customs. ### What role does the declaration play in financial reporting? - [ ] Minor role - [ ] Optional entry - [x] Integral part - [ ] None > **Explanation:** The declaration is an integral part of accurate and compliant financial reporting.

Thank you for exploring the various meanings and applications of “declare” with us. We hope this comprehensive guide and the engaging quiz questions have enriched your understanding of this crucial term in different fields!