undistributed profits

(redirected from Accumulated Income)

Undistributed Profits

The amount of a publicly-traded company's post-tax earnings that are not paid in dividends. Most earnings retained are re-invested into the company's operations. Year-on-year tracking of the ratio of undistributed profits to dividends is important to fundamental analysis to investigate whether a company is increasing or decreasing its rate of re-investment. Undistributed profits form part of a company's equity, and are owned by shareholders. They are also called retained earnings, accumulated profits, undivided profits, and earned surplus.

undistributed profits

undistributed profits

see RETAINED PROFIT.

undistributed profits

see RETAINED PROFITS.
References in periodicals archive ?
To promote IFSC in GIFT City, the Finance Minister proposed to further provide several direct tax incentives to an IFSC including 100 percent profit-linked deduction under section 80-LA in any ten-year block within a fifteen-year period, exemption from dividend distribution tax from current and accumulated income to companies and mutual funds, exemptions on capital gain to Category-III AIF and interest payment on loan taken from non-residents.
The assets of the estate, intellectual property rights and accumulated income were divided between the Duke of Cambridge and Duke of Sussex.
'There is presumption of improperly accumulated income when retained earnings [RE] exceeds capital of the company.
The article provides that if an offshore trust does not distribute all of its income currently, the trust beneficiary will be subject to the draconian "throwback rules" when later distributions of accumulated income are received.
discretionary beneficiaries are subject to what is referred to as a "throwback tax" on accumulated income as and when such income is distributed to them.
The trustees of the PI Subsidiary Trust, a wholly owned subsidiary of the trust, declared a USD1.5 million distribution that was payable to the trust on December 3, 2015, with the distribution made from accumulated income and capital gains.
Accumulated income at the Zoological Society of Ireland last year increased from [euro]3.6million to [euro]5.4million.
However, whether the net investment income tax applies to distributions of accumulated income from foreign trusts under the "throwback" rules remains an open question.
Of course, this has been improved out of his accumulated income but he still lives there where he started.
To put this atrocity in perspective, capitalist Bill Gates has enough accumulated income to purchase every home in the city of Boston.
Among those could be guaranteed cash flow, removing liquid assets from a taxable estate, creating an economic cash flow for a charitable trust, washing the accumulated income tax liability from a tax deferred annuity, or avoiding a double taxation from Estate and IRD taxes on qualified retirement plan monies.
The Income-tax Officer wants to levy tax on the full accumulated income which has not been spent.

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