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Which of the following is the least likely reason why the 6% capital gains tax is a final tax?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter12: Tax Administration And Tax Planning

Section: Chapter Questions

Problem 12P

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Question

Which of the following is the least likely reason why the 6% capital gains tax is a final tax?

A. To mitigate the susceptibility of possible deferral of the actual payment of the tax if the voluntary compliance method is used

B. To ensure payment of the applicable tax before property titles are transferred to the buyer

C. To mitigate the susceptibility of non-reporting of the sale, leading to tax evasion

D. All of the other choices are equally likely to be the reason why

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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