Windfall Profit Law and Legal Definition
Windfall Profit is a profit that occurs suddenly as a result of an event not controlled by the company or person realizing the gain from the event. They can occur due to unforeseen circumstances in a product's market, such as unexpected demand or government regulation. Since the profits were unforeseen, some legislators believe that taxing them at a higher rate, or confiscating them outright, should not hurt the company. This type of taxation is known as a windfall profits tax.
Legal Definition list
Related Legal Terms
- Abnormal Profits
- Accounting for Profits
- Accumulated Earnings and Profits
- Adjusted Underwriting Profit
- Assessment for Profits
- Central Nonprofit Agency
- Charitable or Nonprofit Activity (Gaming Law)
- Community-Based Nonprofit Housing Developer [Banks & Banking]
- Comparable Profit Method (CPM)
- Corporate Profits Tax
