chap#1

Question 1

Definition of Tax?

Answer 1

Collection of share of individual and organization income By Government under authority of law.

Question 2

Objectives’ of Taxation?

Answer 2

1-To collect revenue to run and administer Government.
2-As a Tool for implanting its
policies.
3-Fair distribution of wealth

Question 3

Non-Revenue Objectives?

Answer 3

1-Encourage Production of Certian Goods by introducing a exemptions.
2-High Tax rate on import to encourage Local purchase.
3-Reduce Inequalities in distribution of wealth.
4-Prevent Wealth being concentrated in a few hands of rich.
5.Encounter the Effects of inflation and depression.
6-Promote Science and
inventions,educationsystem,health care system,energy systemand military defense.
7-Discourage investmentabroad.
8-Bargaining tool in trades Negotiation.
9-Use for Documentation of Economy.
10-Discourage use of harmful goods and certian undesirable sector.
11-Encourage research and development.

Question 4

Kinds/Structure of Tax?

Answer 4

1- Proportional Tax/Flat Tax
2-Progressive Tax
3-Regressive Tax

Question 5

Principal for Levy of Tax?

Answer 5

1- The Benefit
2-The Ability to Pay
3- The Equal Distribution

Question 6

Characteristic of tax law?

Answer 6

1-Low compliance cost
2-Understandable
3-Payable in cash
4-Mandatory in nature and non- voluntary in payment.
5-Convenient Time
6-Imposed by state which has jurisdiction over person.
7-Public purpose.

Question 7

Principal of sound Tax system?

Answer 7

1-Fiscal Adequacy
2-Equality or theoretical Justice
3-Administrative Feasibility
4-Consistency and Compatibility with Economic Goals.

Question 8

Types of Tax?

Answer 8

1- Direct Tax
2-Indirect Tax

Question 9

Direct tax

Answer 9

1-Income tax
2-Capital Value Tax

Question 10

In-Direct Tax

Answer 10

1-Sale Tax
2-Customs duty
3-Federal Excise Duty