corporation tax

Also found in: Dictionary, Legal, Financial, Wikipedia.

corporation tax,

imposts levied by federal, state, or local governments against corporations, their income, or their peculiar attributes, such as charters, capitalization, dividends, and franchises. In the United States such taxes were brought about by the difficulty of taxing corporate bonds and stocks and by the growth of corporations beyond state bounds, with consequent difficulty of assessment and taxation. Such special state corporation taxes now include fees and licenses for incorporation or for an increase in capitalization or for filing the corporation's charter in another state; taxes on gross earnings; taxes on tonnage and financial instruments or transactions; franchise taxes; capital stock taxes; and net income taxes. In 1909 the federal government imposed an excise tax on net incomes of U.S. corporations. That tax was superseded by a corporation income taxincome tax,
assessment levied upon individual or corporate incomes. Although personal incomes were occasionally taxed in medieval Italian cities, the income tax is essentially a modern form of taxation.
..... Click the link for more information.
 after the Sixteenth Amendment (1913). In Great Britain in 1920 a tax was levied on corporations, including foreign companies of limited liability doing business in Great Britain, but exempting the profits of corporations receiving income from other corporations already taxed. In both the United States and Great Britain, excess profits taxexcess profits tax,
levy on any profit above a standard level. Chiefly a wartime phenomenon, it is intended to increase revenue during periods of distress and to prevent businessmen from taking unfair advantage of the increased government spending and consumer demand that
..... Click the link for more information.
 has generally been imposed only during wartime.


See S. Réamonn, The Philosophy of the Corporate Tax (1970); H. Nurnburg, Cash Movements Analysis of the Accounting for Corporate Income Taxes (1971).

References in periodicals archive ?
Margaret Hodge, who chairs the public accounts committee, said: "Global companies with huge operations in the UK generating significant amounts of income are getting away with paying little or no corporation tax here.
RWE npower's chief executive Paul Massara told the Energy and Climate Change select committee that the company had not paid corporation tax after he was asked by Labour MP Ian Lavery if he could confirm how much it had paid in 2009, 2010 and 2011.
But a report in The Sun claims that it has avoided paying up to PS108m in UK corporation tax in the past four years with the use of a Maltese company called Scaris.
Analysis of the corporate records of Apple reveals it may have saved as much as PS550million in corporation tax on sales of PS6.
Jason Collins says: When the corporation tax rate was 30% many businesses were going to great lengths to work around what was seen as an unfairly onerous tax bill.
She said: "The promise of cuts in corporation tax rate from 2017/18 was tempered by large business being the biggest funder of the Chancellors' budget through the requirement to pay taxes three months earlier.
What makes me even more annoyed is that the SNP want to cut corporation tax even further than the Tories.
But Labour said some firms were deliberately loading themselves with debt to avoid corporation tax.
For a sale of business assets followed by a liquidation of the entity, C corporation tax treatment exposes the shareholders to double taxation: First, the corporation is taxed on the corporate-level gain at an effective Federal rate of 34%.
With a lower CO2 emissions figure - down from 163 to 148g/km - the latest IS 220d can offer company car drivers reduced Benefit-in-Kind company car tax rates, while the company itself can write down more against Corporation Tax.
Chief executive Bob Diamond, who is expected to get a pounds 9million bonus next month, revealed Barclays' corporation tax bill in a letter to Labour MP Chuka Umunna.
On June 19, 2003, TEI President Drew Glennie submitted a letter to Canadian Minister of Finance John Manley commending the government for announcing a phased elimination of the Large Corporation Tax (LCT).

Full browser ?