The most straightforward job of the shareholder is to provide funds. In practice, however, it isnât straightforward at all. Corporations do need capital to invest in growth, but they donât get it in aggregate from shareholders.
Noun. 1. understatement-a statement that is restrained in ironic contrast to what might have been said. statement-a message that is stated or declared; a communication (oral or written) setting forth particulars or facts etc; according to his statement he was in London on that day.
You understate your tax if the tax shown on your return is less than the correct tax. The understatement is substantial if it is more than the larger of 10 percent of the correct tax or $5,000 for individuals. For corporations, the understatement is considered substantial if the tax shown on your return exceeds the lesser of 10 percent (or if greater, $10,000) or $10,000,000.