This quiz works best with JavaScript enabled. Home > Finance > Accounting > Taxation > Taxation – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxation Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Investments under the following are allowed under 80C deduction A) Infrastructure Bonds. B) Bank Savings Account. C) Life Insurance. D) Debt Mutual Fund. Show Answer Correct Answer: C) Life Insurance. 2. AY for the year 2020-2021 is A) 2020-2021. B) 2019-2020. C) 2021-2022. D) 2022-2023. Show Answer Correct Answer: C) 2021-2022. 3. Which of the following acts are considered as obstruction of the implementation of tax provisions? A) Failure to notify the tax administration of any change in registration. B) B. Attempt to obstruct tax collection and collection. C) C. Failed to keep accounting records and other documents or did not issue business invoices. D) D. Delay in filing and paying taxes. Show Answer Correct Answer: A) Failure to notify the tax administration of any change in registration. 4. A special reduction in taxes that the government allows for a particular purpose A) Tax break. B) Tax allowance. C) Flat tax. D) Tax loss. Show Answer Correct Answer: A) Tax break. 5. If Mr.Ravi has joined a new job on 1/10/2020 after quitting his old job on 15/8/2020, his previous year will be A) 1/10/2019 to 31/3/2020. B) 15/8/2019 to 31/3/2020. C) 1/4/2019 to 31/3/2020. D) None of the above. Show Answer Correct Answer: C) 1/4/2019 to 31/3/2020. 6. This tax is levied at a certain percentage of the workers income and matched by the employer and it pays for social security and medicare. A) Income tax. B) Government tax. C) Payroll tax. D) Self tax. Show Answer Correct Answer: C) Payroll tax. 7. One major goal of taxation could be: A) The redistribution of some wealth from high income earners to low income earners. B) To achieve equality and equity in the distribution of income. C) To Redistribute funds towards projects which benefit the most important citizens in an electorate. D) To achieve equity in the distribution of income by satisfying all stakeholders. Show Answer Correct Answer: A) The redistribution of some wealth from high income earners to low income earners. 8. State of Finland's Budget is prepared by ..... A) Ministry of Finance. B) The president. C) The leader of Church. D) The whole Parliament of Finland. Show Answer Correct Answer: A) Ministry of Finance. 9. Which country does not have VAT: A) USA. B) Australia. C) Canada. D) Mexico. Show Answer Correct Answer: A) USA. 10. Income tax is levied on A) Monthly basis. B) Quarterly basis. C) Yearly basis. D) Half-yearly basis. Show Answer Correct Answer: C) Yearly basis. 11. Tax avoidance is illegal. A) True. B) False. Show Answer Correct Answer: B) False. 12. The definition of the person includes ..... A) An individual. B) A Company. C) And HUF. D) All. Show Answer Correct Answer: D) All. 13. A taxpayer deriving mixed income will also use BIR Form 1701. A) FALSE . B) TRUE. Show Answer Correct Answer: B) TRUE. 14. The service tax rate is ..... w.e.f 1.6.2015 A) 16%. B) 14%. C) 18%. D) 12%. Show Answer Correct Answer: B) 14%. 15. Money that the government collects from people and businesses is called a ..... A) Tax. B) Charge. C) Estate. D) Income. Show Answer Correct Answer: A) Tax. 16. Mr. X, partner of M/s XYZ, is assessable as A) Firm. B) HUF. C) An Individual. D) None of the Above. Show Answer Correct Answer: C) An Individual. 17. What does abbreviation VAT stand for? A) Vehicle added tax. B) Voluntary adulting tax. C) Value availability tax. D) Value added tax. Show Answer Correct Answer: D) Value added tax. 18. Louis's dad pays a tax to the federal government each year based off the money he earns from his lawn mowing business. What type of tax does Louis's dad pay each year? A) Income Tax. B) Payroll Tax. C) Property Tax. D) Sales Tax. Show Answer Correct Answer: A) Income Tax. 19. ..... is a sum of money for the use of something. It is the consideration which is paid for the use of a road, bridge, or the like, of a public nature. A) Toll. B) Penalty. C) Debt. D) Tax. Show Answer Correct Answer: A) Toll. 20. Which of the following is an example of tax evasion? A) When a business under declares their level of profit. B) When Joe Citizen claims an excessive number of deductions. C) When a firm moves to a country with lower taxes than their home country. D) All of the previous / other answers are correct. Show Answer Correct Answer: A) When a business under declares their level of profit. 21. The money you earn BEFORE deductions is your A) Net pay. B) Total. C) Gross pay. D) Status. Show Answer Correct Answer: C) Gross pay. 22. Which of the below import duties would be imposed? A) CGST. B) SGST. C) IGST. D) CGST and SGST. Show Answer Correct Answer: C) IGST. 23. You pay this tax when you get paid your earnings A) Unemployment rate. B) Income tax. C) Gdp. D) Economy. Show Answer Correct Answer: B) Income tax. 24. Statement A. Abolition of the hated Tribute and its replacement of Cedula Tax was under the Tax Reform of 1886.Statement B. Reduction of the 40-day annual forced labor (polo) to 15 days was under Tax Reform of 1884. A) Statement A is true and Statement B is false. B) Statement B is true and Statement A is false. C) Both statements are true. D) Both statements are false. Show Answer Correct Answer: B) Statement B is true and Statement A is false. 25. Administrative sanctions imposed for late deposit of Income Tax are: A) Ascension. B) Flower. C) Shop. D) Criminal. Show Answer Correct Answer: B) Flower. 26. Transaction in which a contract for the purchase or sale of any commodity including stocks and shares is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips is known as ..... A) Wagering transaction. B) Speculative transaction. C) Deemed Speculation business. D) None of these. Show Answer Correct Answer: B) Speculative transaction. 27. How much is the service tax rate? A) 15%. B) 5%. C) 6%. D) 10%. Show Answer Correct Answer: C) 6%. 28. The tax imposed on the acquisition of rights to land and/or buildings is A) BPHTB. B) PPh Final. C) PBB. D) PPN. Show Answer Correct Answer: A) BPHTB. 29. Which one of these does NOT collect taxes from citizens? A) Lutheran Church. B) Red Cross. C) The municipality. D) The state. Show Answer Correct Answer: B) Red Cross. 30. On the basis of residence, the assessees are divided in to how many categories? A) 3. B) 2. C) 5. D) 4. Show Answer Correct Answer: A) 3. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesTaxation Quiz 1Taxation Quiz 2Taxation Quiz 4Taxation Quiz 5Taxation Quiz 6Taxation Quiz 7Taxation Quiz 8Taxation Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books