Taxation

Taxation is a compulsory fee that ...... or ...... must pay to the government.

• individuals

• companies

• corporations

• personal

What is the function of income taxes?

• Income tax are one of the ways in which government can redistribute wealth.

• Income tax is one of the ways in which government can redistribute wealth.

• Income tax is one of the ways in which government can't redistribute wealth.

Reducing the amount of tax you pay to a legal minimum is called

• fiscal policy

• creative accounting

• tax avoidance

• tax havens

Raise revenue to finance government expenditure is the .... function of taxation

• main

• other

Disadvantages of taxation include

• Business profits are generally taxed twice.

• Progressive tax is designed to redistribute wealth and income.

• Progressive tax is always high which discourages people from working and investing.

• Regressive tax is not really fair.

Function of taxation include 2 others such as: excise tax and income tax.

• True

• False

What does the term “tax haven” mean?

• Delaying the payment of taxes to a later time.

• The amount of money subtracted from taxable incomes or profits

• The tax imposed on wages and salaries of individuals.

• A country offering very low tax rates to foreign businesses.

The tax people pay on their wages and salaries is called

• capital transfer tax

• income tax

• wealth tax

A tax levied at a higher rate on higher incomes is called a

• progressive tax

• regressive tax

• wealth tax

A tax paid on property, sales transactions, imports, and so on is a/an

• direct tax

• indirect tax

• value added tax