Financial modelling terms explained


Tax is a compulsory contribution, most often paid to a governing body for the purpose of financing public expenditures. Taxes consist of direct taxes or indirect taxes.

What Is Tax?

Tax is a financial obligation that a person or company must pay to a government to support its operations. The amount of tax owed is based on the person's or company's income, assets, and activities. Tax can be paid in cash or through the deduction of amounts from other payments owed to the government. Tax is a major source of government revenue, and its collection is an important part of a country's financial system.

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