An association is a body of persons united without a charter, but upon the methods and forms used by incorporated bodies, for the prosecution of some common enterprise. Some entities may be associations taxable as a corporation.
Centralized management occurs when day-to-day business operations are handled by appointed officers rather than the shareholders, a characteristic that indicates that an organization may be taxed as a corporation.
A consolidated tax return combines the financial reports of companies that form an affiliated group, as defined by tax laws. This applies to firms that are at least 80% owned by a parent or another inclusive corporation.
In calculating a corporation's Current Earnings and Profits (E&P), nontaxable or tax-exempt income is added to the taxable income for the tax year. Current E&P, if not paid out, transitions into Accumulated E&P. Distributions are first taken from current E&P, and then from accumulated E&P. These distributions are taxable to shareholders to the extent of current and accumulated E&P.
Domestic corporations are entities established under the laws of the United States, operating primarily within the country, and are subject to federal and state regulations.
An extra federal tax imposed on the earnings of a business, typically during times of national emergency to increase national revenue. Distinguishable from a windfall profits tax designed to prevent excessive corporate profit in special circumstances.
Franked Investment Income refers to dividends and other distributions from UK companies that, under the imputation system of taxation, were subject to corporation tax only once and exempt from further tax when received by other companies.
Personal Service Corporation Definition A Personal Service Corporation (PSC) is a type of corporation whose main activity involves providing personal services. These services are typically performed by employees who own a significant portion of the corporation’s stock. The Internal Revenue Service (IRS) defines personal services to include activities in fields such as health, law, engineering, architecture, accounting, actuarial science, performing arts, and consulting. Due to their structure, PSCs are subject to certain adverse tax implications, most notably being taxed at the highest corporate tax rate.
A Profit and Loss Account is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, leading to a company's net profit or loss.
An overview of Recoverable Advance Corporation Tax (ACT), its purpose, and its eventual abolition in the context of corporate taxation practices.
A financial structure that primarily involves an oil or gas company spinning off ownership of an oil-producing property to shareholders, allowing for direct revenue distribution without corporate taxation.
Subchapter C refers to the portion of the Internal Revenue Code that covers corporate taxation, outlining the rules and regulations for how corporations are taxed in the United States.
A financial loss incurred by an organization that can be carried forward to subsequent periods to reduce the tax payable in those periods.
Any investment income received by a company that did not qualify as franked investment income, mainly impacting the tax treatment of dividends.
