We will learn about audits done to ensure compliance with tax laws, and we will also explore exemptions and tax credits, as well as tax breaks and tax shelters.

Ultimately, companies try to gain ah higher tax rebate or pay less tax overall audit on it.

In an audit, Attacks Agency examines and evaluates the financial statements of a person or company.

An audit may reveal mistakes or inconsistencies that result in tax penalties or legal action.

A company may be selected for an audit randomly or, if it's tax return appears to contain mistakes.

Compliance compliance.

If a person or company follows tax laws correctly, then they are in compliance with those laws.

Our company spends a lot of time and money on making sure we are in full compliance with federal tax laws.

Exemptions, exemptions.

Government may give an exemption from tax on some income, meaning that income is not taxed.

Exemptions are often given two organizations, such as charities and schools.

In many tax systems, property that is inherited or received a za gift is given a tax exemption tax credits.

Tax credits.

A tax credit reduces the amount of tax that a person or company must pay.

The government may give credits to businesses in certain industries, like oil exploration.

To encourage investment.

The state government grants our company a tax credit for employing people formerly on welfare.

Tax break tax break.

A tax break, which includes credits and exemptions, reduces a person's or companies taxes.

Companies may be given tax breaks for certain types of expenses, investments or activities such as manufacturing or research.

Many people are upset that large corporations receive greater tax breaks from the government than individuals.

Tax Shelter Tax Shelter tax shelters which may be legal or illegal.

Our methods that reduce a company's taxes.

Tax shelters include offshore companies, retirement plans and investment incentives with very low tax rates.

Bermuda and the Caymans are popular tax shelters for U.

S.

Companies.

Tax rebate Tax rebate.

When the government gives a tax rebate, it returns tax money to people or companies.

We have already paid more tax than we actually.

Oh, so this year we're getting a big tax rebate.

Now it's your turn to practice.

Some of the words we've looked at in this lesson.

In a moment you'll hear a series of sentences with the word replaced with a beep.

Repeat each sentence, including the missing word.

For example, If you hear our accountant helps make sure we are in with tax laws, you can say our accountant helps make sure we are in compliance with tax laws.

We'll play the correct answer after each question ready, Let's give it a go.

If you have ever been selected for attacks, you know it is stressful.

Answer.

If you have ever been selected for a tax audit, you know it is stressful.

The government is offering a tax for new mining operations.

Answer.

The government is offering a tax break for new mining operations, thanks to the recent tax cuts.

I should get a big tax at the end of the year.

Answer.

Thanks to the recent tax cuts, I should get a big tax rebate at the end of the year.

That's all for this episode of video vocab.

Be sure to check out our website at www dot video vocab dot tv for more videos on business English vocabulary.