Topic1 Tax1

What is the primary purpose of taxation?

• To control inflation

• To raise revenue for government expenditures

• To regulate exports

• To encourage imports

What are the two main types of taxes imposed by the Malaysian Government?

• Sales and excise taxes

• Income and property taxes

• Corporate and personal taxes

• Direct and indirect taxes

What does the Income Tax Ordinance 1947 in Malaysia cover?

• Tax laws for modern industries

• Tax laws for agricultural activities

• Tax laws specific to Sabah and Sarawak

• Tax laws based on a model legislation for British colonies

What is the difference between direct tax and indirect tax?

• Direct tax is imposed on imports, while indirect tax is on exports

• Direct tax is only applicable to individuals, while indirect tax is for corporations

• Direct tax is fixed, while indirect tax varies with income levels

• Direct tax is paid directly to the IRB, while indirect tax is collected by Custom

What is the basis period in Malaysian taxation?

• The accounting period for tax deductions

• The financial year of a company

• The period when tax rates are adjusted

• The period relative to a year of assessment

What are the three sources of revenue law in Malaysia?

• International law, maritime law, environmental law

• Civil law, criminal law, administrative law

• Common law, equity law, constitutional law

• Statute law, case law, practice of the Malaysian Inland Revenue Board

Which section of the Income Tax Act 1967 defines the scope of charge for income tax in Malaysia?

• Section 4

• Section 31

• Section 3

• Section 4A

Under Section 4 of the Income Tax Act 1967, which class of income includes gains or profits from a business?

• Section 4(d)

• Section 4(c)

• Section 4(a)

• Section 4(b)

What does the term 'indirect tax' refer to?

• A tax that cannot be shifted to someone else

• A tax imposed on luxury goods only

• A tax paid directly to the government by the taxpayer

• A tax collected by an intermediary from the person bearing the economic burden