Income Tax Law and Practice
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Questions and Answers

What is the primary purpose of income tax law and practice?

  • To simplify the tax filing process for individuals
  • To maximize government revenue by imposing the highest tax rates possible
  • To discourage individuals from seeking high-paying jobs
  • To ensure equitable distribution of tax burden among taxpayers (correct)
  • Which of the following is NOT a principle of income tax law and practice?

  • Flat taxation (correct)
  • Regressive taxation
  • Proportional taxation
  • Progressive taxation
  • What is the main purpose of tax planning in the context of income tax law and practice?

  • To confuse tax authorities by complex financial maneuvers
  • To discourage individuals from paying taxes at all
  • To evade taxes by any means necessary
  • To minimize tax liability within the boundaries of the law (correct)
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