Tax Global Chapter 1

Under the worldwide method income earned abroad by foreign subsidiaries:

Under the participation exemption system active business income earned abroad by foreign subsidiaries:

Which of the following are the government taxes on earned income?

“—–are a type of consumption tax placed on each step of the production process and also collected when the product is sold.

“—-are collected from consumers at the time of sale only.

Property taxes are assessed on:

“—-are taxes imposed by governments on the distribution of estate assets

Which schemes of tax is followed here:” Higher income means the individual must pay a greater percentage of taxes as income increases beyond certain levels or band”

“—- tax is imposed regardless of whether the individual is single or married divorced or separated with or without children a widow(er) high or low income or has some other status.

“—relates to sales of goods or services between parent company and subsidiary company

Which of the following statement is incorrect regarding Total income?

“—-eliminates income from inclusion in the tax computation.

A tax credit:

“—a credit against qualified expenses such as those for childcare or education

Tax avoidance refer to—

Tax deferral refers to:

Tax evasion refer to:

“—refers to an agreement between territories regarding how taxes will be assessed on a company or citizen domiciled in one territory and earns income in another territory.

Which of the following most likely refers to personal property?

Which of the following most likely refers to real property?

Which of the following most likely refers to investment property?

In an investment context income usually is categorized as:

An arrangement where a corporation pays an individual for the right it gives to use its trademark.

Which of the following is an example of unrealized gain or loss?

The adjusted cost of the property is referred to as:

The —-earnings help the annuity investment to grow at higher rate.

If an investor purchases an asset for $1000 that requires $200 to maintain and improve what will be the basis of the investment (assuming no depreciation or additional transactions)?

Assume a person invests $500 to purchase a chair for his or her home. The individual refinishes the chair at a cost of $100 and proceeds to use it for seven years before selling it at a price of $800. What is the basis?

Which principle of tax system is referred here “Goal of a tax system is to generate the revenue a government needs to pay its expenses.”

Equity principal of tax system relate to:

“— refers to the ability to adjust the tax system in response to changes in the economy and the needs of the government.

The source of income is important for taxation purposes.

Most courts of law recognize a taxpayer’s right to minimize tax payable through use of legal tax planning opportunities.

The tax treatment of capital assets usually is similar to tax treatment of income.

Generally capital gain tax treatment is favourable, and lower than normal income tax treatment.

Purchases or sales of personal use assets do not represent a taxable event, the owner does not need to report a taxable gain, nor is he or she allowed to deduct a loss.

The degree of taxation is not necessarily directly caused by the amount of benefits likely to be received by the employee at some point in the future,