TAXATION

Question 1

taxation (oporezivanje)

Answer 1

the transfer of money from individuals and companies to finance the government
expenditure

Question 2

corporation tax (korporacijski porez)

Answer 2

the tax on company profits in Britain

Question 3

custom duties (carine)

Answer 3

taxes charged on most imports

Question 4

income tax (porez na dohodak)

Answer 4

the tax people pay on their wages and salaries, and also on business profits in the
US

Question 5

direct tax

Answer 5

a tax paid directly to the government (such as income tax on wages and salaries or
on company profits)

Question 6

progressive tax

Answer 6

taxation system where tax levels increase as the income is higher

Question 7

proportional (flat) tax

Answer 7

a system that taxes everyone at the same rate, regardless of

their income bracket

Question 8

indirect tax

Answer 8

a tax which is not paid directly to the government (such as sales tax levied on the
sale of goods and services)

Question 9

value-added tax (porez na dodanu vrijednost)

Answer 9

a tax on goods and services, added as a percentage to the invoiced sales
price

Question 10

capital gains tax (porez na dobit)

Answer 10

a tax on profits made by selling assets

Question 11

capital transfer tax or inheritance tax (porez na prijenos kapitala ili porez na nasljedstvo)

Answer 11

a tax people pay on gifts and inheritances

over a certain value

Question 12

wealth tax

Answer 12

the annual tax imposed on people’s fortunes (in some countries) if their value is
above a particular amount

Question 13

tax evasion (utaja poreza)

Answer 13

making false declarations to the tax authorities, trying illegally not to pay tax

Question 14

tax avoidance (izbjegavanje poreza)

Answer 14

reducing the amount of tax you pay to a legal minimum

Question 15

regressive tax

Answer 15

a tax where people with low incomes spend a larger proportion of what they
earn on sales tax than those with high incomes

Question 16

consumption

Answer 16

spending money to buy things, rather than saving it

Question 17

national insurance

Answer 17

a tax on incomes that pays for sickness benefit, unemployment benefit,
and old-age pensions

Question 18

perks

Answer 18

non-financial benefits or advantages of a job

Question 19

tax shelters

Answer 19

a way to postpone or reduce taxation by spending income on a pension plan, life
insurance policy, etc.

Question 20

tax-deductible

Answer 20

expenditures (such as business expenses, or donations to charity) that can be
taken away from taxable income or profits

Question 21

tax haven

Answer 21

a country offering very low tax rates to non-residents and foreign businesses

Question 22

tax loss

Answer 22

a loss made deliberately by a business to avoid paying tax on profits, usually by
bringing forward capital expenditure to use up profits at the end of the tax year

Question 23

excise duties (trošarine)

Answer 23

taxes raised on certain products, particularly on tobacco and alcoholic drinks

Question 24

fiscal policy

Answer 24

the government’s policy relating to government finances (taxation, expenditure,
etc.)

Question 25

budget

Answer 25

financial operation plan showing expected income and expenditure

Question 26

budget deficit

Answer 26

if government’s expenditures exceed money collected by taxes

Question 27

budget surplus

Answer 27

if tax revenues are higher than government spending

Question 28

money laundering

Answer 28

processing illegally obtained money through more than one bank, in order
to conceal its origin

Question 29

loophole

Answer 29

a legal way of avoiding tax by exploiting part of a law

Question 30

sales tax

Answer 30

a tax on a wide range of goods and services, a percentage of the retail price

Question 31

tax relief

Answer 31

allowing someone not to pay tax on certain parts of their income

Question 32

underground or black economy

Answer 32

all employment and business transactions on which tax

is not paid

Question 33

to levy

Answer 33

to demand payment of a tax and collect it; to impose or collect tax or other financial
charge

Question 34

tax year

Answer 34

12 month period on which taxes are calculated

Question 35

taxpayer

Answer 35

a person or an organization that is obliged to pay taxes

Question 36

double taxation

Answer 36

taxing a single amount of money twice, e.g. company profits are taxed and
then taxed again when they are given to shareholders in the form of dividends

Question 37

tax break

Answer 37

a special reduction in taxes that the government allows for a particular purpose

Question 38

tax return

Answer 38

1) the form on which you have to give information so that your tax can be
calculated;

2) a return of excess taxes paid during a given tax year, more accurately known as a “tax
refund”