The principle of self liquidating debt

ACCRUAL BASIS (ACCRUAL METHOD) -- An accounting method whereby income and expense items are included in taxable income or expense as they are earned or incurred, rather than when they are received or paid AD VALOREM TAX -- A tax on goods or property expressed as a percentage of the sales price or assessed value ADMINISTRATIVE COMPANY -- See: Service company ADMINISTRATIVE EXPENSES -- Expenses that are not as easily associated with a specific function as are the direct costs of manufacturing and selling.It typically includes expenses of the headquarters office and accounting expenses.ADMINISTRATIVE OFFICE -- Office frequently located in a country other than that of the headquarters office, the parent company or country of operation.

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AGGREGATION -- Term used to denote the adding together of the taxpayer's income from all sources in order to determine the applicable tax rate for income tax obtain profit from the application of tax rules).ARBITRATION -- Term used for the determination of a dispute by the judgment of one or more persons, called arbitrators, who are chosen by the parties and who normally do not belong to a normal court of competent jurisdiction ARM'S LENGTH PRINCIPLE -- The international standard which states that, where conditions between related enterprises are different from those between independent enterprises, profits which have accrued by reason of those conditions may be included in the profits of that enterprise and taxed accordingly ARM'S LENGTH RANGE -- A term used in transfer pricing to describe a range of values that can be defined for purpose of selecting an appropriate arm's length price from comparable transactions.ARM'S LENGTH TRANSACTION -- A transaction among parties, each of whom acts in his or her own best interest.ASSESSMENT -- Act of computing the tax due ASSOCIATED ENTERPRISES -- Generally speaking, enterprises are associated where the same persons participate directly or independently in the management, control or capital of both enterprises, i.e. ATTRIBUTION RULES -- Rules that create ownership by attributing stock to one party even though the shares are legally owned by another party; often called constructive ownership of stock.The decisive criterion is whether the activity of the fixed place of business in itself forms an essential and significant part of the activity of the enterprise as a whole.AUXILIARY COMPANY -- Company which is part of a group of companies and which supplies auxiliary services to group companies.AUDIT -- Examination and verification carried out by an outside agency (such as an accountancy firm or the tax authorities) of a taxpayer’s books and accountants and/or the general accuracy of returns and declarations, either as a routine operation, or where evasion is suspected.AUXILIARY ACTIVITIES -- A fixed place of business through which an enterprise exercises solely an activity which has, for the enterprise, a preparatory or auxiliary character, is, under tax treaties generally, deemed not to be a permanent establishment.Disclaimer: Explanations on the terms are very condensed and may not be complete.They are not considered to necessarily reflect official position of the OECD in interpreting international tax terms, for example, in the tax treaty context.