FREE CA Taxation & Compliance Questions and Answers
What penalty can result from failure to comply with tax regulations?
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Wrong!
Non-compliance with tax laws can lead to financial penalties, legal actions, and reputational damage for individuals and businesses.
Which type of tax applies to goods and services at each stage of production?
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Value Added Tax (VAT) is a consumption tax applied at each stage of production and distribution, ultimately paid by the consumer.
What is the main function of an audit in tax compliance?
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An audit ensures that financial records are accurate and tax filings comply with legal regulations, reducing fraud and errors.
What is the primary purpose of tax compliance?
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Tax compliance ensures that individuals and businesses adhere to tax laws and fulfill their tax obligations accurately and timely.
Which tax is levied on the profit of businesses?
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Corporate income tax is imposed on the profits earned by businesses, and the rates vary by jurisdiction.
Which tax is typically deducted from an employee's salary before payment?
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Payroll tax, such as income tax withholding, is deducted from employees' salaries before they receive their earnings.