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Which of the following statements NOT correct?
If a taxpayer is not in agreement with the decision of the Tax Appeals Authority, there is no further action that the taxpayer can take.
Where a taxpayer loss an appeal, the taxpayer is required to pay interest on the unpaid tax from the payment date statement on the Decision Notice.
Tax planning within the confines of the tax laws is not illegal.
Effective tax management may result in significant cost savings.
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- The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally1. What is the tax preparer required to disclose before allowing a customer to apply for a Financial Product? a) All filing and product options available to the customer, including those with no additional costs b) The timing and costs associated with each refund option c) All fees and/or repayments that will be deducted from the refund d) All of the above e) Nothing. The tax preparer is not required to disclose anything to the customer.Which of the following is a correct statement? O Tax avoidance includes failure to pay tax on unreported income from legal sources The IRS estimates that more income tax is lost from evasion involving illegal activities than from unreported legal activities, O Tax avoidance is legal O Tax evasion includes the application of legal loophole to reduce tax liability
- Таx occurs when taxpayers legally apply tax law to reduce or eliminate taxes payable in ways that the Canada Revenue Agency (CRA) considers potentially abusive of the spirit of the Income Tax Act. Таx occurs when taxpayers attempt to deceive the CRA by knowingly reporting less tax payable than what the law obligates them to pay A abuse; evasion В avoidance; evasion evasion; avoidance D planning; abuse V planning; analysisFor each of the following situations, indicate the amount of the penalty that could be imposed on the tax return preparer: a. A tax return preparer understates the taxpayer's tax liability with a frivolous position and does not disclose the position. The greater of $ percent of the income derived by the tax preparer for an undisclosed unrealistic position. or b. A tax return preparer fails to furnish his identifying number. c. A tax return preparer aids a taxpayer (an individual) in understating a tax liability. d. A tax return preparer endorses and cashes a client's tax refund check.The following reasons may be given by a taxpayer in refusing to pay his tax liability. Which is not acceptable for legally refusing to pay the tax? o That he will derived no benefit from the tax. o That he has been deprived of due process of law o That the prescription period for the collection of tax has lapsed. o That there is lack of territorial jurisdiction (And please explain the reason why, thank you)
- According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client? (If an input field is not used leave the input field(s) empty.) not to disclose tax-related errors without the client's consent. to inform the client of corrective measures to be taken. C to inform the client of errors in a previously filed tax return. to inform the client of how the client can avoid a penalty through disclosure. to inform the client of the potential adverse consequences of a tax return position. to inquire of the client when information provided by him or her appears incorrect, incomplete, or inconsistent on its face. to inquire of the client when the client must satisfy conditions to take a deduction. to instruct the client to file an extension based on refunds that are expected. to instruct the client whether or not to file a tax return.For each of the following situations, indicate the amount of the penalty that could be imposed on the tax return preparer A tax return preparer understates the taxpayer’s tax liability with a frivolous position and does not disclose the position. $ A tax return preparer fails to furnish his identifying number $ A tax return preparer aids a taxpayer in understating a tax liability $ A tax return preparer endorses and cashes a client’s tax refund check.Which of the following statements is (are) correct? (x) Part of the administrative burden of a tax is the cost of implementing and administering government programs that use the tax revenue that is collected (y) A tax loophole occurs when tax laws give preferential treatment to specific types of behavior. (z) A mortgage interest deduction would be considered a tax loophole because it allows home purchasers to reduce their tax liability when they pay mortgage interest. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (y) only
- All are true except: a. OSD is a substitute for itemized deduction. b. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. c. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. d. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumedWhich of the following statements is false? Select one: O A. In general, individual taxpayers are required to file a tax return only if their gross income exceeds the standard deduction OB. The penalty for failure to file is more severe than the penalty for failure to pay OC. Taxpayers may file a tax return even when they are not required to do so to obtain a refund of income taxes withheld OD. Individual tax returns are always due on April 15 for calendar-year individualsI. A withholding tax system is one in which the payment of income tax is paid upon the receipt of income by the taxpayer.II. The withholding tax system was introduced to expedite collection process and not delay the expenditures needed by the public.III. Under the withholding tax system, the payor of income withholds a certain percentage of income and remits the same to the BIR while the payee would receive only the net amount, and will no longer have to pay income tax. Only statement 1 is correct Only statements 1 and 2 are correct Only statements 1 and 3 are correct All statement are incorrect