Taxation

What is taxation?

• A way to delay the payment of tax to a later time

• The tax people pay on their wages and salaries

• A compulsory fee that individuals or corporations must pay to the government

What is the main function of taxation?

• To raise revenue to finance government expenditure

• To economic growth, high employment, and low inflation

• Can help one understand human thought and behavior

What term is this definition of?

"To dissuade people from consuming some non-essential goods and services."

• taxation

• perks

• excise tax

• corporate income tax

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

• tax avoidance

• tax shelters

• tax evasion

What does the term “tax shelter” mean?

• delaying the payment of taxes to a later time

• do not pay tax

• is not declared to the tax authorities

What are the advantages of different tax systems?

• progressive tax is designed to redistribute wealth and income

• To ensure social equality, reduce the gap between the rich and the poor

• Both A and B

What are low tax countries called?

• tax evasion

• tax avoidance

• tax shelters

• tax havens

Which of the following answers indicates a form of tax deduction?

• free health insurance

• pension plans

• charities

• life insurance policies

It is imposed not on the goods or services as such but on the privilege of selling or importing goods or rendering services for a fee, remuneration or consideration.

• consumption tax

• excise tax.

• indirect tax

• proportional tax.

Value Added Tax is a/an

• Indirect Tax

• Direct Tax

• Local Tax

• Personal Tax