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Which one of the following is the main reason for applying a progressive income tax rate?
To attract foreign investments
❌
To encourage people to work
❌
To raise government revenue
❌
To reduce the inequality of income dispersion
✅
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Which form of taxation provides the biggest source of government revenue?
Goods and Services Tax
0%
Excise taxes
0%
Pay as you earn (PAYE)
0%
Company taxes
0%
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A recent review of the tax system (Tax Review Report 2001) found that:
People should think about deeper taxation issues
✅
We should all stop paying tax
❌
The current taxation system in New Zealand is perfect
❌
There are no choices available in the tax system
❌
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Tax avoidance is:
An illegal act of disclosing false information to the IRD
0%
An economic arrangement with the incidental benefit of reducing tax
0%
Refusing to pay the tax bill you receive from the IRD
0%
A legal arrangement with the primary goal of reducing tax
0%
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Which one of the following best explains the reason why the tax rate for GST is often described as regressive?
It is because low income earners pay relatively more GST than high income earners
100%
It is because the GST base is relatively broader in its coverage than the income tax base
0%
It is because the rate is relatively low compared to the income tax rate
0%
It is because GST has very few exemptions
0%
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In New Zealand, the individual tax system can be described as:
Regressive
❌
Proportional
❌
Progressive
✅
Indirect
❌
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CGT stands for:
Company gains tax
0%
Corporate gains tax
0%
Consumer gains tax
0%
Capital gains tax
0%
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Which one of the following is subject to PAYE (pay as you earn) tax?
Business income
0%
Interest income from bank deposit
0%
Employees' salary income
0%
Self-employed people's income
0%
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The tax criterion of ___ assesses how understandable the tax system is to an intelligent layperson.
Simplicity
0%
Vertical equity
0%
Efficiency
0%
Horizontal equity
0%
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Which of the following is an example of the proportional tax?
PAYE
0%
Companies tax
0%
Goods and Services tax
33%
Individual income tax
❌
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