READING TAXATION QUESTIONS

Advantages and disadvantages of different tax systems.

• A

• B

• C

• D

• E

Avoiding tax on profits

• A

• B

• C

• D

• E

Avoiding tax on salaries

• A

• B

• C

• D

• E

Tax evasion

• A

• B

• C

• D

• E

The functions of taxation

• A

• B

• C

• D

• E

Taxes can be designed both to discourage and to encourage spending.

• TRUE

• FALSE

The same amount of money can be taxed more than once.

• TRUE

• FALSE

Progressive taxes may discourage people from working extra hours.

• TRUE

• FALSE

Sales taxes are unfair because poor people spend more than the rich.

• TRUE

• FALSE

The Italian government knows that about one seventh of national income escapes taxation.

• TRUE

• FALSE