● ● ● BASIC PRINCIPLES OF A SOUND TAX SYSTEM Fiscal Adequacy - sources of revenue should be sufficient to meet the demands of public expenditure. Equality or theoretical Justice - tax burden should be in proportion to the taxpayer's ability to pay. (Ability-To-Pay Principle) Administrative Feasibility - tax laws should be capable of convenient,

● ● ● BASIC PRINCIPLES OF A SOUND TAX SYSTEM Fiscal Adequacy - sources of revenue should be sufficient to meet the demands of public expenditure. Equality or theoretical Justice - tax burden should be in proportion to the taxpayer's ability to pay. (Ability-To-Pay Principle) Administrative Feasibility - tax laws should be capable of convenient,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content AreaKrista is a CPA who helps her clients minimize their overall tax liability. What function is she performing? a. Tax evasion b. Tax planning c. Tax deferral d. Tax preparation
If a government wants to obtain the maximum tax revenue it should A. use static tax analysis. B. not assess the highest possible tax rate. C. assess the highest possible tax rate. D. use an ad valorem system for collecting taxes.
The power to tax is provided for by the Constitution, the National Internal Revenue Code, Special Laws, and administrative revenue issuances. Group of answer choices True False
• Fiscal Adequacy - sources of revenue should be sufficient to meet the demands of public expenditure. ● BASIC PRINCIPLES OF A SOUND TAX SYSTEM ● Equality or theoretical Justice tax burden should be in proportion to the taxpayer's ability to pay. (Ability-To-Pay Principle) - Administrative Feasibility tax laws should be capable of convenient, just and effective administration. - A) Which do you think is the most important among the three inherent powers of the state? Why? B) If a tax law violates one of the three principles of sound tax system, is it necessarily null and void? Explain your answer.
The current federal income tax structure is progressive in nature. First, explain what that means. Second, regarding the proposal for a "flat tax", comment on both justification for and major obstacles to enactment.
Tax accounting is a service offered by public accounting firms that involves both tax planning and which of the following? Multiple Choice A.)tax compliance B.)tax avoidance C.)tax elimination D.)tax payment. Please explain incorrect and correct option without plagiarism
Taxing individuals to provide public goods increase the burden of taxes .This means its optimal to combine taxes and individual contributions to provide such goods. True or false, and explain
Anti-avoidance provisions _________________. a. eliminate tax planning by taxpayers. b. are provisions in the tax laws to prevent certain harmful tax avoidance practice. c. will always prevent tax evasion. d. will eliminate all tax avoidance.
What is the difference between tax rates and tax rate structures? How does this notion of 'structure' relate to the vertical equity of a tax system? Select the INCORRECT response. a. A tax rate is the ratio of tax revenue to a tax base as set by statute such as an income tax rate or a mil rate. b. A tax rate structure is the set of rates related to a particular tax base. c. For the income tax, vertical equity can be categorized by observing the tax rate structure (how rates respond to income). d. Taxpayers face many different tax structures but only one tax rate.
You and Jackie are arguing whether tax laws can be retroactive in its application. Jackie noted that they can only be prospective but you take the stand that it may retroactive. Which of the following would be the least fit example you could give? A. tax laws imposing business tax B. tax laws implementing riles and regulations that are remedial in nature C. tax circulars that are intended for internal purposes of BIR D. tax memoranda that are interpretative in nature
Which of the following is a correct statement? O Tax avoidance includes failure to pay tax on unreported income from legal sources The IRS estimates that more income tax is lost from evasion involving illegal activities than from unreported legal activities, O Tax avoidance is legal O Tax evasion includes the application of legal loophole to reduce tax liability
A memorandum or other form of communication used to report the results of tax research will include which of the following? a. The list of individuals consulted in the process b. A list of facts used in arriving at the solution c. A general statement of the issue d. A letter from the IRS confirming that the research is accurate and binding e. The solution recommended and the logic or reasoning supporting it