Legal Definitions - interest-equalization tax

An interest-equalization tax is a type of tax imposed by the government on certain transactions or entities to generate public revenue. It is a monetary charge that is not necessarily payable in money.

• Accrued tax: A tax that has been incurred but not yet paid or payable.
• Accumulated-earnings tax: A penalty tax imposed on a corporation that has retained its earnings in an effort to avoid the income-tax liability arising once the earnings are distributed to shareholders as dividends.
• Admission tax: A tax imposed as part of the price of being admitted to a particular event.

These examples illustrate how taxes can take different forms and be imposed on various entities or transactions. For instance, an accrued tax is a tax that has been incurred but not yet paid, while an accumulated-earnings tax is a penalty tax imposed on corporations that retain their earnings to avoid income tax. An admission tax, on the other hand, is a tax imposed on individuals attending a particular event.