27 Questions
What type of tax is Personal Income Tax?
Direct
Which factor does Personal Income Tax consider when determining the tax amount for individuals?
Total income obtained
What does it mean when Personal Income Tax is described as progressive?
The tax rate increases more than proportionally with income
Why is Personal Income Tax considered personal?
It takes into account personal and family circumstances of individuals
What does 'irrespective of their origin' mean in relation to Personal Income Tax?
Tax is not influenced by where the income comes from
What does it mean for Personal Income Tax to be described as 'direct'?
It is levied on a direct manifestation of the ability to pay, such as rent
What is a key characteristic of Personal Income Tax according to Neumark?
Taxing total income without exemptions
Why does Personal Income Tax consider 'net income' according to tax principles?
To accurately determine the true income of the taxpayer
What aspect allows Personal Income Tax to be considered a 'progressive' tax?
It assumes that an individual's ability to pay increases more than proportionally with income
Which characteristic allows Personal Income Tax to adapt to the economic capacity of each taxpayer?
Taking into account personal and family circumstances
'Identity of object and taxable base' is a characteristic of Personal Income Tax that emphasizes what concept?
Matching tax base with the source of income
Which of the following is NOT taxed as income tax based on the text?
Corporate income
How are inter-jurisdictional problems related to taxation typically solved within the same country?
Harmonisation criteria established by a rule from the higher government
What do 'Double Taxation Agreements' aim to address?
Inter-jurisdictional taxation conflicts between different countries
Which organization developed a model of tax treaty?
OECD
What distinguishes income accruing to natural persons from income accruing to legal persons according to the text?
Treatment under corporate tax
What is considered as part of consumption in the extensive approach to income?
Remuneration in kind
In the economic sense according to Simons, how is an individual's income calculated?
As the sum of consumption and wealth variation
What concept related to income did the Carter Report suggest adding donations to?
Extensive income considered Taxable income in the personal income tax
Which aspect does Haig's definition of income focus on according to the text?
Net increase in individual's consumption capacity
What does "change in wealth" under the extensive approach to income calculation involve?
Savings and capital gains
Why did Rosen argue for using the concept of extensive income?
To add the contributions of various scholars to the concept of income
Why is it suggested to treat all types of income equally for tax purposes?
To improve the neutrality of the tax system.
Which principle from Haig, Simons, and Carter contributes to the concept of extensive income according to the text?
Horizontal equity principle
Why is self-consumption included in the economic concept of income according to the text?
To tax the utility obtained in the form of self-consumption instead of money and accomplish horizontal equity
What types of expenses are deducted from gross income to obtain net income according to the text?
Operating expenses and personal expenses
Why are unrealised capital gains typically not taxed in any tax system according to the text?
Due to problems on liquidity of tax payers to afford the burden of the tax and due to problems in certainty in order to determine the capital gain
Learn about the characteristics of personal income tax as a direct, personal, and progressive tax levied on individuals. Understand how it is based on the economic capacity of the subject, considering personal and family circumstances.
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