What is the main purpose of taxation in a modern economy?

• To promote exports

• To support government spending on public services

• To create inflation

• To eliminate subsidies

Which of the following is a direct tax?

• Sales tax

• Export duty

• Corporate tax

• Import duty

Which law governs income tax in Malaysia?

• Stamp Act 1949

• Real Property Gains Tax Act 1976

• Income Tax Act 1967

• Labuan Business Tax Act

Which of the following is NOT a principal source of Malaysian taxation law?

• Case law

• Legislation (Statute law)

• Practice of IRB

• Oral traditions

Which income is NOT chargeable under Section 4 of ITA 1967?

• Business income

• Capital receipt

• Rental income

• Employment income

Which of the following is a characteristic of employment income received in Malaysia?

• Received once and never again

• Occurs randomly

• Repetitive and from a source

• Received only from abroad

What type of income is defined in Section 4(c)?

• Royalty income

• Dividend income

• Business income

• Pension income

Which of the following best defines tax evasion?

• Using legal ways to reduce tax

• Falsifying records to avoid tax

• Delaying tax payment

• Asking for tax refunds

Tax avoidance is best described as:

• Breaking tax laws

• Legal use of loopholes

• Refusing to pay tax

• Paying extra tax

Income tax in Malaysia applies to both individuals and companies.

• TRUE

• FALSE