Statement 1: As a method of collection, withholding helps improve the government's cash flows. Statement 2: Withholding of taxes is implemented pursuant to the principle of a sound tax system known as theoretical justice. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Statement 1: As a method of collection, withholding helps improve the government's cash flows. Statement 2: Withholding of taxes is implemented pursuant to the principle of a sound tax system known as theoretical justice. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 1MCQ: The definition of gross income in the tax law is: All items specifically listed as income in the tax...

See similar textbooks

Similar questions

1. What is the effect of financial distress and taxation on gearing? A. Both constrain gearing B. The tax constrains gearing; financial distress pushes for increased gearing C. The tax pushes for increased gearing; financial distress constrains gearing D. Both push for increased gearing
Tax Planning (LO 12.7) Select either "True" or "False" for each of the following statements. Item Description Answer a. Decreasing one's tax liability through legal methods is called tax - planning, while illegally reducing taxes is called tax evasion. b. In a "closed" transaction, all tax - significant events have been completed. c. The marginal tax rate is computed as the total tax paid divided by the total income of the taxpayer. d. The marginal tax rate is the most important rate for decision making in tax - planning situations. e. A timing tax - planning technique usually has the objective of deferring the payment of tax until a later year.
I. Multiple Choice: Choose the correct answer. 1. The levying and imposition of tax and the collection of tax are processes which constitute the taxation system. a. Basis of Taxation b. Aspects of Taxation 2. No person shall be imprisoned for the non-payment of this. c. Nature of Taxation d. Theory of Taxation c. Income Tax d. Property Tax a. Excise Tax b. Poll Tax 3. Tax which is demanded from the persons whom the law intends or desires to pay it. a. Income 4. Tax where the rate increases as the tax base increases. b. Direct c. Indirect d. Excise c. Regressive d. Proportional a. Indirect 5. Catriona Grace, a taxpayer, gives the following reasons for refusing to pay a tax. Which of her reasons is not acceptable for legally refusing to pay the tax? a. That she has been deprived of due process of law. b. The she will derive no benefit from the tax. c. That there is lack of territorial jurisdiction. d. That the prescriptive period for the tax has lapsed. 6. Wiley Cyprus, a Canadian…
2. The following are requisites of a valid tax, EXCEPT A. tax must not encroach upon inherent and Constitutional limitations B. the rule of taxation should be uniform C. tax should be used for public purpose D. tax is payable in money only
Which of the following statements is / are correct?1. Some tax credits are refundable.2. Some tax credits are nonrefundable.a. 1 only.b. 2 only.c. Both 1 and 2.d. Neither 1 nor 2.
I. A withholding tax system is one in which the payment of income tax is paid upon the receipt of income by the taxpayer.II. The withholding tax system was introduced to expedite collection process and not delay the expenditures needed by the public.III. Under the withholding tax system, the payor of income withholds a certain percentage of income and remits the same to the BIR while the payee would receive only the net amount, and will no longer have to pay income tax. Only statement 1 is correct Only statements 1 and 2 are correct Only statements 1 and 3 are correct All statement are incorrect
Explain each of the following statements independently: a. Tax systems should be fair. b. The tax calculation will not be correct whenever income tax preferences exist. c. Fiscal policies are used to judge tax systems and achieve government objectives.
Which of the following statements is (are) correct? (x) Part of the administrative burden of a tax is the cost of implementing and administering government programs that use the tax revenue that is collected (y) A tax loophole occurs when tax laws give preferential treatment to specific types of behavior. (z) A mortgage interest deduction would be considered a tax loophole because it allows home purchasers to reduce their tax liability when they pay mortgage interest. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (y) only
Tax deductions differ from tax credits because: A. deductions affect relative prices, credits do not B. credits cost more to the federal treasury than deductions. C. credits are designed to help the wealthiest tax payers. D. All of the above
Identify which statement is incorrect: * a. Sale of goods or services by any person or entity may result to the payment of income tax. b. Sale of goods or services by any person or entity may result to the payment of business tax. c. Sale of goods or services by any person or entity may result to the payment of donor's tax. d. All statements are correct. e. All statements are incorrect.
an ideal tax system should conform to certain principles. which of the following statement is not generally regarded as a principle of an ideal tax a - it should be convenient in terms of timing and payment b - it should raise as much money as possible for the government c - it should not be arbitrary, it should be certain d - it should be fair to different individuals and should reflect a persons ability to pay
Which is NOT a proper exercise of administrative feasibility?a. Electronic Tax Payment System (eTPS)/Land Bank Remittance System (LBRS)b. Payment of tax thru credit/debit/prepaid cards/G-Cashc. Requirement to all taxpayers to file tax returnsd. Substituted Filing of Qualified Compensation Income Earners