Tax
Mandatory payment to government by individuals/businesses.
Formula
Tax Payable = Taxable Income × Tax Rate
Real World
Apple paid a corporation tax rate of just 0.005% in Ireland in 2014, prompting the EU to rule it received illegal state aid worth €13 billion.
Exam Focus
Distinguish between direct taxes (on income/profit) and indirect taxes (on spending) — examiners expect this classification.
How well did you know this?