Sunday 26 April 2015

Cima F1 Exam Question No 10

Question No 10:

What are the Source of tax rules?

Answer:

  • Legislation produced by national governments
  • Precedents based on previous legislation (interpretations, bulletins)
  • Directives from the EU
  • Agreements between different countries (double tax treaties)

Sunday 19 April 2015

Cima F1 Exam Question No 9

Question No 9:

What are the 3 types of taxes (by rate) ?


  • Progressive
  • Proportional
  • Regressive

Monday 13 April 2015

Cima F1 Exam Question No 8

Question No 8:

What is Tax gap?

Gap between the tax theoretically collectable and the amount actually collected

Friday 10 April 2015

Cima F1 Exam Question No 7

Question No 7:

What is Hypothecation?

Answer:
Certain taxes are devoted entirely to certain types of expenditure (road tax, London congestion charge)

Sunday 5 April 2015

Cima F1 Exam Question No 6

Question No 6:

Accounting depreciation is replaced by tax depreciation?

A. To reduce the amount of depreciation allowed for tax
B.
To increase the amount of depreciation allowed for tax
C.
To ensure that standard rates of depreciation are used by all organisations for tax
purposes
D.
So that the government can more easily manipulate the amount of tax organisations pay

Answer:
C