Certified Financial Advisor
Home > Preview
The flashcards below were created by user
on FreezingBlue Flashcards.
What are the two types of Taxation??
- Direct taxes
- Indirect taxes
What are the different types of direct taxes?
- Corporation taxes
- Income Tax
- Unemployment Levy
- Business Levy
- Green Fund Levy
- Health Surcharge
- Hotel Accommodation Tax
- Insurance Premium Tax
- Land and Building Taxes
- Petroleum Profit Tax
- Savings Plans/Annuity/ Pension refunds
- Withholding Taxes
What is corporation tax?
A tax on the profits and short term gains of companies
What is income tax?
A tax on income
What is unemployment levy?
A tax on the profits of companies
What is a business levy?
A tax on gross revenue at a rate of 0.2% payable quarterly
What is the Green Fund Levy?
A tax on the gross revenue at 0.1% payable quarterly
What is health surcharge?
A tax charged on income that is applied to the provision of local health services
What is hotel accommodation tax?
A tax levied on hotel accommodation
What is Insurance Premium Tax?
A tax levied on insurance companies for the premiums paid
What is land and building taxes?
A tax paid on the assessed values of land and buildings
What is petroleum profits tax?
A tax on the profits earned by businesses in the petroleum operations under the petroleum taxes act
What is savings plans/ annuity/ pension refunds?
A tax levied on the refund of pension contributions or withdrawal from long term savings plans or the surrender of an annuity.
What is withholding tax?
A tax based on various income payments to non residents
What are the different types of indirect taxes?
- Value Added Tax (VAT)
- Customs and Excise Duties
- Import Surcharge
- Stamp Duty
- Motor Vehicle Tax
What is value added tax (VAT)?
A tax levied on the import and on the value of supplies of goods and services. It is 15%
What is customs and excise duties?
A tax on imports and manufactured goods
What is import surcharge?
A tax on imports
What is stamp duty?
A tax on instruments
What is motor vehicle tax?
A tax levied on the sale of motor vehicles
What is chargeable income?
The total emoluments of a person for the year of income less the appropriate deductions and exemptions granted under the income tax act
What is an employee?
Any person not being the holder of the office who is in receipt of emoluments
What is an employer?
Any person paying emoluments whether on his own behalf or on the behalf of another person to an emplyee
What are emoluments?
Salary, wages, bonus, overtime, commission etc.
What are allowable deductions?
Any deductions allowed according to the income tax act
What is an office?
means a position entitling the holder to a fixed or ascertainable stipend or remuneration and also includes the company's director
What is a board of inland revenue number?
A number assigned by the board of inland revenue to every employee or office holder for whose emoluments tax is deducted
What is a non residential individual?
An individual who is a non resident of T&T but is in receipt of emoluments arising from employment in T&T
What is a Tax declaration form?
A form which sole purpose is to make the appropriate deductions from emoluments
What is TD4 certificate?
A certificate issued by the employer to the employee under Regulation 12 of the Income Tax Regulations on an annual basis
What is a tax year?
For individuals it is a calendar year
What is the income tax act?
Chapter 75:01 and it states that the board of inland revenue is responsible for regulation, collection and administration of all activities related to income tax
Who must file their taxes?
- Every individual who is in receipt of income
- Corporations operating in T&T
Who doesn't need to file taxes?
- A resident individual whose sole source of income is from emoluments
- A non resident whose sole source of income from T&T is subjected to withholding tax
What are the filing dates for individuals?
April 30th for the previous calendar year income
What is the filing date for partners in a partnership?
Partnerships are not a taxable entity but the partners are and they need to file their taxes by April 30th
What are the filing dates for Corporations?
They are to file their taxes by April 30th but they are suppose to make quarterly estimated income tax payments
What is a sole trader?
Is the simplest form of business if the sole trader's business goes bankrupt he himself goes bankrupt everything is in his name meaning the sole trader and the business are one.
What is a partnership?
A partnership as defined by Partnership Act 81:02 is the relation which subsists between persons carrying on a business a business with a view of profit.
What are some of the advantages of a partnership?
Their accounts don't have to be deposited at the registrar office
What is a disadvantage of a partnership?
The partners are personally reliable for the debts of the firm. A loss in the company means a loss for the partnership
Home > Flashcards > Print Preview