Taxation

Which of the below statements about GST is/are correct?

• ONLY

• ONLY

• AND ONLY

• , AND

Which of the following statements is correct regarding the types of taxes?

• The tax which has incidence and impact both at the same point is the indirect tax

• The tax which has incidence and impact at the different points is the indirect tax

• Sales tax is an example of direct tax which is directly imposed on the consumers.

• Interest Tax is an example of Indirect tax which indirectly affects the income of an individual.

Consider the following statements regarding the ‘Progressive taxation’: Which of the following statement(s) is/are correct?

• ONLY 1

• 2 AND 3

• 1 AND 3

• 1,2 AND 3

Consider the following statements regarding the ‘Proportional taxation’: Which of the following statement(s) is/are correct?

• AND 2 ONLY

• 2 AND 3 ONLY

• 1 AND 3 ONLY

• ALL OF ABOVE

Which of the following statements is incorrect regarding a good tax system:

• a.    In a good tax system the individuals in identical or similar situations paying identical or similar taxes is known as horizontal equity.

• b.    In a good tax system the ‘better off’ people pay fewer taxes it is known as vertical equity.

• c.    A good tax system has the scope of desirable modifications in it if there is any such need.

• d.    As per the transparency factor of a good tax system-How much tax taxpayers are actually paying and what are they getting against it in the form of the public services should be ascertainable

Consider the following statements regarding value added tax (VAT): I. A tax collected at every stage of value addition, i.e., either by production or distribution is known as value added tax. II. Production of goods or services is nothing but stages of value additions where production of goods is done by the industrialists or manufacturers. Which of the following statement(s) is/are correct?

• ONLY

• ONLY

• AND

• NEITHER NOR

Can there be a case when a citizen be considered both a resident and nonresident within the same taxable year?

•   Yes, if a nonresident citizen returned to the Philippines for good in May, he is taxable on his income worldwide from January – April and taxable on his income within from May – June.

•    Yes, if a nonresident citizen returned to the Philippines for good in May, he is taxable on his income within from January – April and taxable on his income worldwide from May – June.

•   No, if a nonresident citizen returned to the Philippines for good in May, he is taxable on his income worldwide starting January of next year.

•   No, if a nonresident citizen returned to the Philippines for good in May, he is taxable on his income worldwide starting January of current year, his year of arrival.

   

Which of the following is a characteristic of a regressive tax system?

• A) Higher income earners pay a larger percentage of their income in taxes.

• B) Lower income earners pay a larger percentage of their income in taxes.

• C) All income earners pay the same percentage of their income in taxes.

• D) Taxes are based on the value of property owned.

What is the primary purpose of taxation in a society?

• A) To punish the wealthy.

• B) To redistribute wealth equally among all citizens.

• C) To fund government operations and public services.

• D) To control inflation.

Which of the following taxes is considered a direct tax?

• A) Sales tax

• B) Income tax

• C) Value-added tax (VAT)

• D) Excise tax