Terms with Category Taxation
- Gross National Product (GNP) — Acronym,
- The value of all goods and services accruing to Canadians in a given year. It equals Gross Domestic Product, plus income of Canadians from foreign production, less income from Canadian production earned by non-residents (such as interest and dividends paid to foreign lenders).
- Gross Overtime — Definition,
- Overtime pay before taxes that is averaged over two years can be considered monthly income, but it must be over the two years or it does not count.
- Harmonized Sales Tax (HST) — Acronym, Canada,
- A sales tax used in some provinces to merge the GST and PST.
➥ Canadian consumption tax. - Health and Welfare Trust (HWT) — Acronym,
- A method for employers to offer their employees tax-free health benefits.
- Home Office (HO) — Acronym,
- A part of your home or other structure on your property for which you qualify to take a deduction for its business use.
➥ Many mortgage and insurance brokers do work from home and utilize a home office. - Household Income (HHI) — Acronym, Important,
- The total income of all members of a household.
- Imports — Definition,
- Goods and services produced in other countries and sold in Canada.
- Income — Definition,
- The money earned in a specific time period.
- Income Approach — Definition,
- A step in the valuation process of an income property. The value is reached by estimating the annual income minus an allowance for vacancies and bad debts and then subtracting annual operating expenses, real estate taxes, and insurance premiums to obtain the net operating income. This is then converted by capitalization into a capital value.
- Income Statement — Definition,
- Also known as the profit and loss statement or P&L, enables you to calculate your company's pre-tax profits by subtracting total expenses from total revenues.
- Income Tax — Definition,
- The main source of revenue for the federal government and many Provinces. The tax is based on your earned and unearned income. The amount or percentage taxed is based on the amount of income, using the governments graduated tax scale.
- Income-splitting — Definition,
- A financial strategy used for tax purposes to reduce the overall tax burden on a family. Income is shifted from one family member to another who is in a lower tax bracket, so the income is taxed at the lower rate to save the family money.
- Indirect Tax — Definition,
- A tax that is collected by a third party before being transferred to the government.
- Infrastructure — Definition,
- Basic installations that a community needs, such as schools, roads, water and electrical lines, power plants and communications systems.
- Insurance Proceeds — Definition,
- The benefits received by an individual after a claim has been verified.
- Intangible Asset — Definition,
- Non-physical resources or rights to other assets. Patents, goodwill, permits and computer programs are examples of intangible assets.
- Intangible Property — Definition,
- Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
- International Chamber of Commerce (ICC) — Acronym,
- A world business organization that brings business people and experts together to formulate policies in such areas as banking, taxation and the environment.
- Investment — Definition,
- Something you put your money into in order to make money.
- Investment Income — Definition,
- Income that is earned from investments such as interest, dividends, and capital gains.
- Kicker — Definition,
- Any benefit to a lender above ordinary fixed-interest payments such as an equity position in a property or a percentage participation in the income stream.
- Land Transfer Tax (LTT) — Acronym,
- A provincial tax payable on any property that changes hands. First time buyers may be eligible for a rebate.
- Levy — Definition,
- A cost imposed on an individual or entity.
- Life Insurance Trust (LIT) — Acronym,
- A legal entity that is made the beneficiary of a life insurance policy, often arranged to evade taxation.
- Local Improvement Charge — Definition,
- A fixed annual fee levied by a municipality against specific real property for a specific period which amortizes the capital costs of local improvements such as sewers, paved roads, etc. This charge is in addition to real estate taxes.
- Local Taxes — Definition,
- Taxes imposed by local governments (municipalities) to pay for its services. These taxes are in addition to Federal and Provincial taxation.
- Marital Deduction — Definition,
- For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
- Meals and Entertainment (M&E) — Acronym,
- Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
- Mill Rate — Definition,
- A unit of taxation that is a set ratio made by the city or municipality in reference to property taxes.
- Money Laundering (ML) — Acronym,
- A process used by individuals to conceal illegally acquired funds by converting them into seemingly legitimate income. The term is generally associated with organized crime and those who need to legitimize illegally earned funds.
3.
Gross National Product -
Household Income
Household Income
