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- Regressive tax takes a higher proportion of a poorer person’s income than of a richer person’s income. Is the statement true or false?In almost all cases, making contributions to an RRSP will provide the deferral of income tax. In some cases, making such contributions may result in avoidance of tax. Explain these statements.Which of the following statements is true? Deductions are amounts allowed by the NIRC to be deducted from gross income to arrive at the income tax liability of the taxpayer. The taxes which are deductible from gross income include the taxes, interest and penalties incident to tax delinquency. O Payments which constitute bribes, kickbacks, and others of similar nature which are necessary to realize a profit are allowed as deductions from gross income. O Losses from wagering transactions shall be allowed only up to the extent of the gains from such transactions.
- All are true except: a. OSD is a substitute for itemized deduction. b. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. c. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. d. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumedWhich of the following types of expenses is deductible? Group of answer choices A.Bribes & Illegal Kickbacks B.Expenses related to Tax-Exempt Income C.Political Contributions D.Contingency Attorney FeesThe Commissioner can estimate the income and expense of a taxpayer. O True False
- It has been suggested that tax policy favors deductions for AGI compared to deductions from AGI (Itemized Deductions). For this discussion, describe two (2) ways in which deductions for AGI are treated more favorably than itemized deductions. Provide at least two (2) examples of each type of deduction (for AGI and from AGI)Which of the following is correct? a) An item of gross income that is subject to tax in one scheme will not be taxed by the other schemes. b) An item of income that is exempt from regular income taxation may be subject to capital gains taxation. c) In final income taxation, the taxpayer remits the tax to the government. d) All capital gains from capital assets are subject to capital gains tax.The tax laws treat capital gains and losses differently from ordinary gains and losses. True or false
- All are true except: OSD is a substitute for itemized deduction. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumed.An S corporation is subject to the following tax(es). a.Corporate income tax. b.Built-in gains tax. c.Alternative minimum tax. d.None of these choices are correct.Discuss actions a taxpayer can take if it is anticipated that his income taxes will be substantially underpaid in order to minimize penalties.