Accumulated profits tax

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Accumulated profits tax

A tax on earnings retained in a firm as a way for the principals to defer personal income taxes.

Accumulated Profits Tax

A tax on the profits of a company. Owners of a company sometimes pay accumulated profits taxes as a way to reduce their personal income tax liabilities. See also: Corporation tax.
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subsidiary can retain earnings with near-certainty of avoiding a second-level tax simply by investing the earnings in assets owned by the subsidiary (with possible constraints under the personal holding company (139) and accumulated earnings taxes (140)), a U.

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