Excess Profits Tax

Definition of Excess Profits Tax

Tax levied on profits which are beyond the normal profits of a business and generally imposed in times of national emergency such as war to discourage profiteering. The Internal Revenue Code also imposes a tax on corporations who accumulate an unreasonable surplus of profits rather than paying such out as dividends. I.R.C. § 531 et seq. See Accumulated earnings tax.

That's the definition of Excess Profits Tax in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.