Exercise 2.4 Are the following statements true or false? Correct the false ones

1. Capital gains are generally taxed at a higher rate than income.

b) True; b) False

2. The same sum of money can be taxed more than once.

b) True; b) False

3. Sales taxes can be both proportional and progressive at the same time.

b) True; b) False

4. Excise duties are extra sales taxes on selected products.

b) True; b) False

5. Many international companies have their registered headquarters in small countries where they do only a small proportion of their business.

b) True; b) False

6. Employees will generally pay less tax if their employer reduces their salary a little and provides them with a car.

a) True; b)False

7. Tax avoidance is illegal.

b) True; b) False

8. Perks and loopholes are forms of tax evasion.

b) True; b) False

Exercise 2.5 What are the standard names for the tax or taxes paid on the following?

1. alcoholic drinks and tobacco products

a) capital transfer tax;

b) excise taxes;

c) income tax

2. company profits

a)corporation tax;

d) tariffs;

e) value-added tax;

3. goods bought in stores

a) estate tax;

b) VAT;

c) national insurance;

4. money received from relatives after death

a) excise duty;

b) GST;

c) estate tax;

5. salaries and wages

a) capital gains tax;

b) sales taxes;

c) income tax;

6. goods made in other countries

a) tariffs;

b) GST;

c) excise duties;

7. money made by selling stocks at a profit

a) capital gains tax;

b) sales tax;

c) inheritance tax;