excess profits tax

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Excess profits tax

Additional federal taxes placed on the earnings of a business, used only in time of national emergency such as war.

Excess Profits Tax

A tax imposed on a company's profits over a certain amount. Excess profit taxes are imposed in order to generate more revenue for the government, especially during national emergencies. In the United States, excess profit taxes have been implemented during wartime. There are also periodic debates on whether to impose an excess profit tax on private industries thought to be necessary for consumers in order to discourage profiteering or price gouging. Particularly, oil and gas companies have been targeted for this form of the excess profit tax. See also: Windfall Tax.

excess profits tax

A temporary tax levied on business profits during a period of national emergency. For example, the federal government may levy an additional corporate income tax during wartime to generate extra government revenues.
References in periodicals archive ?
Penalising the large corporations by 'excess profit tax' is a bad idea.
While we do not expect an excess profit tax to be widely introduced in the next twot othree years, that the government is even considering this approach is positive, in our view.
Vedomosti reported today (26 Oct), citing LUKOIL's CEO Vagit Alekperov, that the Ministry of Finance is considering the introduction of an excess profit tax (EPT) for Caspian oilfields.
Profit-based taxation for greenfield projects is likely to be introduced in 2014, implying replacement of the recently increased Mineral Extraction Tax (MET) with an excess profit tax at 27%.
- An excess profit tax should be introduced and the Mineral Extraction Tax abolished at the same time from 1 Jan 2012.
In January this year, Ilya Trunin, the head of customs and tariffs policy at the Ministry of Finance said that the ministry is considering the possibility of the substitution of MET and export duty with an excess profit tax. Equally, according to statement made by Deputy Prime Minister Igor Sechin in May, the government is to introduce its proposals on an excess profit tax to Vladimir Putin by the end of 2010.
As oil prices have soared in the past year, politicians on both sides of the political fence have called for a wide variety of responses to this perceived "crisis." These proposed "solutions" have included price controls, excess profit taxes on oil companies, oil tax rebates for consumers, increased fuel standards for cars and trucks, and penalties for price gouging.
The oil companies are still talking about Katrina and Iraq and EPA rules, while effectively blocking any conversations about excess profit taxes.
As oil prices have soared in the past year, politicians on both sides of the political fence have called for a wide variety of responses to this perceived "crisis." These "solutions" have included price controls, excess profit taxes on oil companies, oil tax rebates for consumers, increased fuel standards for cars and trucks and penalties for price gouging.
The instructions should clarify that taxpayers may present the data on Schedules C and F, as well as Schedules D (Cost of Goods Sold), E (Income, War Profits, and Excess Profit Taxes Paid or Accrued), and G (Analysis of Unappropriated Retain Earnings per Books), in the CFC's functional currency as long as the adjustments required by Treas.
As oil prices have soared in the past year, politicians on both sides of the political fence have died for a wide variety of responses to the perceived "crisis." These "solutions" have included price controls, excess profit taxes on oil companies, oil tax rebates for consumers, increased fuel standards for cars and trucks, and penalties for price gouging.