Thursday 30 June 2016

Cima F1 Exam Question No 56

Question No 56:

Which one of the following could be said to be a progressive tax?

A.
Property sales tax at 1% of the selling price of all properties sold.
B.
Value added tax at a rate of 0%, 10% or 15% depending on the type of goods or services provided.
C.
Corporate wealth tax at 2% of total net assets up to $10 million then at 0.5% on total net assets greater than $10 million.
D.
Personal income tax at 10% on earnings up to $10,000, then at 15% from $10,001 up to $100,000 and 25% over $100,000

Answer: D

Thursday 23 June 2016

Cima F1 Exam Question No 55

Question No 55:

An ideal tax system should conform to certain principles. Which one of the following statements is not generally regarded as a principle of an ideal tax?

A.
It should be fair to different individuals and should reflect a person’s ability to pay.
B.
It should not be arbitrary, it should be certain.
C.
It should raise as much money as possible for the government.
D.
It should be convenient in terms of timing and payment.

Answer: C

Thursday 16 June 2016

Cima F1 Exam Question No 54

Question No 54:

In Country Y, A earns $75,000 profit for the year and receives a tax bill for $17,000. B earns $44,000 profit for the year and receives a tax bill for $4,800. Country Y’s income tax could be said to be a:

A.
Regressive tax
B.
Proportional tax
C.
Progressive tax
D.
Fixed rate tax

Answer: C

Thursday 9 June 2016

Cima F1 Exam Question No 53

Question No 53:

Taxes commonly used by many countries include:

(i) import duty payable on specific types of imported goods;
(ii) individual income tax, usually deducted at source;
(iii) corporate income tax;
(iv) value added tax.

Which of the above would normally be defined as direct taxation?

A.
(i) and (ii)
B.
(i) and (iv)
C.
(ii) and (iii)
D.
(ii) and (iv)

Answer: C