MCQs on Taxation

What is tax evasion?

What is the compulsory payment made by citizens to the government?

Which of the following is NOT a reason for imposing taxes?

Differentiate between direct and indirect taxes.

What is the principle of tax equity?

The government is considering a tax break for companies that invest in renewable energy. How might this policy impact tax revenue and environmental sustainability?

A country is experiencing a period of high inflation. What type of tax might the government use to try to control inflation?

Compare and contrast the advantages and disadvantages of direct and indirect taxes.

Evaluate the potential effectiveness of tax avoidance strategies. While legal, are there any ethical considerations to using tax loopholes?

Do you think the government should prioritize raising tax revenue or reducing taxes to stimulate the economy? Explain your answer.