TAXL LU 2

What is the starting point in taxation according to the text?

• Each person should carry the tax burden allocated to him

• Each person should avoid paying taxes

• Each person should evade taxes

• Each person should not be taxed

Who is taxed on their worldwide income in South Africa?

• Non-Residents of South Africa

• South African residents

• Companies

• Trusts

What is the formula for calculating taxable income?

• GROSS INCOME - Exemptions = Income + Allowable deductions = Taxable Income

• GROSS INCOME - Exemptions = Income - Allowable deductions = Taxable Income

• GROSS INCOME + Exemptions = Income - Allowable deductions = Taxable Income

• GROSS INCOME - Exemptions = Income - Allowable deductions + Taxable Income

What is included in gross income?

• Only amounts received by the taxpayer's family

• Only amounts received by the taxpayer personally

• All amounts received by or accrued in the taxpayer's favor

• Only cash amounts received by the taxpayer

What are deductions used for in taxation?

• To evade taxes

• To increase a taxpayer's taxable income

• To reduce a taxpayer's taxable income

• To avoid paying taxes

What is the inclusion rate for capital gains for individuals?

• 20%

• 40%

• 60%

• 80%

What is the purpose of dividends in taxation?

• To evade taxes

• To increase tax liability

• To reduce tax liability

• To transfer after-tax profit

Who administers the Income Tax Act in South Africa?

• Department of Taxation

• Department of Finance

• National Revenue Fund

• South African Revenue Service (SARS)

What is the purpose of value-added tax in South Africa?

• Levied on property

• Levied on income

• Levied on investments

• Levied on the purchase of goods and services

What is the tax levied on the transfer of ownership of shares?

• Estate duty

• Securities transfer tax

• Capital gains tax

• Donations tax