Taxes are often ovved on?

initial investments,

the current value of investments.

the real value of investments,

investment returns.

Investment returns

Explanation:

Tax is a compulsory levy imposed by the government on an individual, firms etc for the provision of infrastructure.

Generally speaking, taxes are paid as soon as money is earned. While some taxes are due for payment when investments are sold at a profit, others like dividend, mutual funds are due when distribution is paid on the investment.

The ratio of gain or losses on an investment is referred to as investment returns. The returns could be higher which means profit hence must be taxed. It could also be the other way round, i. e lower returns. In such situation, loss is incurred on the investment and it is not taxed same way as having profit on the investment.