Taxation

Which principle says that people who earn more money should pay a higher percentage of taxes?

• Generality

• Progressivity

• Equity

• Transparency

Which principle ensures that tax rules are clear so people don’t get confused?

• Sufficient Collection

• Efficiency

• Transparency

• Non-Retroactivity

Which principle ensures that tax processes are easy to follow and do not involve unnecessary bureaucracy?

• Administrative Simplicity

• Generosity

• Equity

• Progressivity

Which principle ensures that everyone in Ecuador pays taxes without discrimination?

• Generality

• Transparency

• Progressivity

• Efficiency

Which principle makes sure taxes are fair and based on what each person can afford?

• Efficiency

• Equity

• Non-Retroactivity

• Sufficient Collection

Which principle ensures that taxes provide enough money for public services like hospitals and schools?

• Transparency

• Generality

• Equity

• Sufficient Collection

Which principle states that new tax laws cannot affect past transactions?

• Administrative Simplicity

• Equity

• Progressivity

• Non-Retroactivity

Is it possible for a person runs a business using their personal tax ID (RUC), without the need to set up a formal company?

• True

• False

Who is required to keep formal accounting records, and under what conditions?

• Everyone with a business

• People with sales below $300,000 per year

• People with sales over $300,000 per year

• Only large companies

If someone earns less than $300,000 per year in sales, what type of tax records do they need to keep?

• None

• A formal accounting ledger

• A simple Income and Expense Ledger

• Monthly financial audits