#1
Which of the following is not a principle of taxation?
Equity
Certainty
Voluntary compliance
Convenience
#2
What does the ability-to-pay principle in taxation suggest?
Tax should be based on the taxpayer's ability to pay.
Tax should be levied uniformly on all citizens.
Tax should be imposed regardless of income level.
Tax should only be paid by those who voluntarily comply.
#3
What is the primary purpose of tax planning?
To evade taxes illegally.
To minimize tax liabilities within the legal framework.
To hide income from tax authorities.
To discourage investment.
#4
What is the primary purpose of a tax audit?
To encourage tax evasion.
To detect and prevent tax evasion and fraud.
To impose heavy penalties on taxpayers.
To increase tax rates.
#5
What is the 'benefit principle' in taxation?
Tax should be based on the taxpayer's ability to pay.
Tax should be levied uniformly on all citizens.
Tax should be imposed in proportion to the benefits received from public goods and services.
Tax should only be paid by those who voluntarily comply.
#6
Which taxation system imposes a higher tax rate on higher-income earners?
Flat tax
Progressive tax
Regressive tax
Proportional tax
#7
What is the primary objective of a tax incidence analysis?
To determine who bears the economic burden of a tax.
To calculate the total tax revenue collected.
To evaluate the efficiency of tax collection methods.
To assess the impact of tax exemptions.
#8
What is the principle behind the benefit received principle in taxation?
Tax should be based on the taxpayer's ability to pay.
Tax should be levied uniformly on all citizens.
Tax should be imposed in proportion to the benefits received from public goods and services.
Tax should only be paid by those who voluntarily comply.
#9
Which taxation system imposes the same tax rate on all income levels?
Flat tax
Progressive tax
Regressive tax
Proportional tax
#10
What is the difference between tax evasion and tax avoidance?
There is no difference; both terms refer to the same concept.
Tax evasion is legal, while tax avoidance is illegal.
Tax evasion involves intentionally failing to pay taxes owed, while tax avoidance involves minimizing tax liabilities within the legal framework.
Tax avoidance involves intentionally failing to pay taxes owed, while tax evasion involves minimizing tax liabilities within the legal framework.
#11
Which of the following is not a criterion for an effective tax system?
Equity
Economy
Efficiency
Evasion
#12
Which of the following taxes is considered an indirect tax?
Income tax
Property tax
Value-added tax (VAT)
Corporate tax
#13
Which of the following taxes is generally considered the most regressive?
Sales tax
Property tax
Income tax
Estate tax
#14
What is the 'horizontal equity' principle in taxation?
Taxpayers with similar abilities to pay should pay the same amount of tax.
Taxpayers with higher incomes should pay a higher proportion of their income in taxes.
Tax should be levied uniformly on all citizens.
Tax should be imposed in proportion to the benefits received from public goods and services.
#15
In a tax system, what does the term 'elasticity' refer to?
The ability of taxpayers to change their behavior in response to changes in tax rates.
The ease with which taxes can be collected from taxpayers.
The fairness and justice of the tax system.
The proportion of income paid in taxes.
#16
Which tax base is most commonly used for a progressive income tax system?
Consumption
Wealth
Income
Property
#17
What is the 'vertical equity' principle in taxation?
Taxpayers with similar abilities to pay should pay the same amount of tax.
Taxpayers with higher incomes should pay a higher proportion of their income in taxes.
Tax should be levied uniformly on all citizens.
Tax should be imposed in proportion to the benefits received from public goods and services.