S2 - taxation Flashcards
1
Q
what is corporation tax
A
on profits
Set by parliament
Tax provision
Dr tax charge SOPL
Cr tax charge SOFP
2
Q
what is tax avoidance
A
reducing tax liability legally
Use of artificial tax avoidance schemes
3
Q
what is tax evasion
A
illegal manipulation of business affairs to escape tax
Tax havens - zero or low rate tax. Normal tax rates but preferential treatment ot certain activities
