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WorksheetsTaxation
Total questions: 20
Worksheet time: 7mins
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
(a) : something which discourages an action
(a) : encourages capital invesment with methods of accelerated depreciation accounting.
What are the advantages of different tax systems?
A 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
True or False?
1. A progressive tax is always low, which discourages people from working and investing
2. A regressive tax is fair
3. Business profits are generally taxed twice
1. T
2. T
3. T
1. F
2. F
3. T
1. T
2. F
3. F
1. F
2. T
3. T
What is a progressive tax called ?
(a)
(a) : A tax levied at a higher rate on higher incomes
What type of tax does the graph below represent?
progressive tax
regressive tax
What is tax evasion ?
is not declared to the tax authorities
false declaration to tax authorities
both A and are wrong
both A and are correct
Reducing the amount of tax you pay to a legal minimum is called :
tax avoidance
tax shelters
tax evasion
How do individual evasion tax ?
self-employed people and people with part-time jobs don't declare their to the tax authorities
Self-employed workers declare to tax authorities while part-timer workers undeclared income to the tax authorities .
Self-employed workers do not declare to tax authorities while part-time workers declare income to tax authorities
"Non-financial benefits or advantages of a job.
For example company cars, free health insurance,..."
What is this?
(a)
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 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
Multinational companies often set up head offices in where (a)
Criminal organizations tend to pass money through a series of companies in very complicated transactions to disguise its origin from the tax inspectors and the police called.....
tax evasion
laudering money
tax avoidance
tax shelters
What is one of the ways for companies to avoid tax on profits?
Companies can bring forward capital expenditure so that at the end of the year all the profits have been used up
Companies can subtract expenditures from taxable income
Both A and B are wrong
