Listen to a Business English Dialogue About Deferral of taxes
Maya: Hey Freddie, have you heard about deferral of taxes in finance?
Freddie: Yes, it’s when taxpayers delay paying taxes on income until a later date.
Maya: That’s correct. It’s often used by businesses to manage cash flow and invest more money upfront.
Freddie: Right. It allows them to reinvest the money that would have been paid in taxes, potentially earning more in the long run.
Maya: Exactly. However, it’s important to note that taxes will eventually need to be paid on the deferred income.
Freddie: Absolutely. It’s more of a temporary solution rather than a permanent tax avoidance strategy.
Maya: Agreed. Deferring taxes can be advantageous in certain situations but it’s essential to plan for the eventual tax liability.
Freddie: Definitely. Proper tax planning is crucial to ensure compliance and avoid penalties.
Maya: Right. It’s important for individuals and businesses alike to understand the implications of deferring taxes.
Freddie: Absolutely. Being aware of tax deferral options can help optimize financial decisions and maximize savings.
Maya: Exactly. It’s a tool that can be used strategically to manage finances effectively.