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.
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- 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 eliminate all tax avoidance. d.will always prevent tax evasion.Adopting wrongful means to show less profit to avoid tax is part of : a. Tax evasion b. Tax planning c. Tax accounting d. Tax managementTax 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.
- a. Explain what is meant by general anti-avoidance rule. B). State what impact this could have on Jamaica's tax system if implemented.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 only43. Which of the following tax collection systems is most vulnerable to tax evasion? * 44.Which of the following tax collection systems is tax evasion practices became unlikely to be done? choices: Withholding system on business tax Final withholding tax Creditable withholding tax system Voluntary compliance system
- 1.) Which theory of taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction? a. Lifeblood theory b. Reciprocity Theory c. Symbiotic theory 2.) Which type of tax is already repealed by the CREATE Act? a. Regular Corporate Income Tax b. Minimum Corporate Income Tax c. Improperly Accumulated Earnings Tax d. Percentage TaxWhich 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) onlyWhat do you know about tax evasion, tax avoidance, and tax exemption? Please elaborate youranswer and give example of these activities.
- Explain the main differences between tax evasion and tax avoidance and list the main actions taken by governments to reduce/eliminate them?Таx occurs when taxpayers legally apply tax law to reduce or eliminate taxes payable in ways that the Canada Revenue Agency (CRA) considers potentially abusive of the spirit of the Income Tax Act. Таx occurs when taxpayers attempt to deceive the CRA by knowingly reporting less tax payable than what the law obligates them to pay A abuse; evasion В avoidance; evasion evasion; avoidance D planning; abuse V planning; analysis1. 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