Liquidating trust and tax
The statement will show the business's assets in one column and its liabilities and owner's equity in another column.
BALANCING PAYMENT -- A payment, normally from one or more participants to another, to adjust participants’ proportionate shares of contributions, that increases the value of the contributions of the payer and decreases the value of the contributions of the payee by the amount of the payment, in the context of CCA (Cost Contribution Arrangements). BASE COMPANY -- Company situated in a low-tax or non-tax country (i.e.
ARM'S LENGTH TRANSACTION -- A transaction among parties, each of whom acts in his or her own best interest.
ASSESSMENT -- Act of computing the tax due ASSOCIATED ENTERPRISES -- Generally speaking, enterprises are associated where the same persons participate directly or independently in the management, control or capital of both enterprises, i.e. ATTRIBUTION RULES -- Rules that create ownership by attributing stock to one party even though the shares are legally owned by another party; often called constructive ownership of stock.
ACCOUNTING PERIOD -- A period of time used by taxpayer for the determination of tax liability ACCOUNTS PAYABLE -- A list of the debts currently owed by a person or business, mainly for the purchase of services, inventory, and supplies ACCOUNTS RECEIVABLE -- A list of the money owed on current account to a creditor, which is kept in the normal course of the creditor's business and represents unsettled claims and transactions ACCOUNTING RECORDS -- All documents and books used in the preparation of the tax return and all financial statements, including general ledger, subsidiary ledgers, sales slips, and invoices.
ACCRUAL BASIS (ACCRUAL METHOD) -- An accounting method whereby income and expense items are included in taxable income or expense as they are earned or incurred, rather than when they are received or paid AD VALOREM TAX -- A tax on goods or property expressed as a percentage of the sales price or assessed value ADMINISTRATIVE COMPANY -- See: Service company ADMINISTRATIVE EXPENSES -- Expenses that are not as easily associated with a specific function as are the direct costs of manufacturing and selling.
It typically includes expenses of the headquarters office and accounting expenses.
ADMINISTRATIVE OFFICE -- Office frequently located in a country other than that of the headquarters office, the parent company or country of operation.
ADVANCE PRICING ARRANGEMENT (APA) -- An arrangement that determines, in advance of controlled transactions, an appropriate set of criteria (e.g.