Section A: Basic Principles and Constitutional Framework
- Which of the following is considered a fundamental principle of taxation?
A. Certainty of tax liability
B. Ability to pay
C. Complexity in computation
D. Varying rates for different income groups
Answer: B. Ability to pay - Under the Indian Constitution, which Article empowers the Parliament to levy taxes?
A. Article 246
B. Article 19
C. Article 300
D. Article 275
Answer: A. Article 246 - The doctrine of ‘no taxation without representation’ is most closely related to which principle?
A. Administrative efficiency
B. Equality
C. Accountability
D. Consent of the governed
Answer: D. Consent of the governed - Which of the following is NOT a characteristic of a good tax system?
A. Simplicity
B. Equity
C. Certainty
D. Complexity
Answer: D. Complexity - The principle of ‘vertical equity’ in taxation means that:
A. Everyone should be taxed at the same rate
B. Tax rates should be progressive with income
C. Tax should be levied only on vertical (capital) gains
D. Only direct taxes should follow this principle
Answer: B. Tax rates should be progressive with income - The power to levy excise duty in India is primarily vested in which level of government?
A. State Governments
B. Union Government
C. Local Bodies
D. Panchayats
Answer: B. Union Government - Which Article of the Constitution deals with the distribution of legislative powers between the Centre and States?
A. Article 368
B. Article 246
C. Article 300A
D. Article 19
Answer: B. Article 246 - In the context of taxation, the term ‘fiscal federalism’ refers to:
A. The process of combining tax revenues from different states
B. The division of taxation powers between the Centre and the States
C. Taxation on inter-federal transactions
D. The application of the same tax rates across all federal units
Answer: B. The division of taxation powers between the Centre and the States - The concept of “ability to pay” suggests that:
A. Tax should be levied uniformly regardless of income
B. Higher income earners should pay more taxes
C. Tax should be levied only on disposable income
D. Tax liability is independent of income level
Answer: B. Higher income earners should pay more taxes - Which of the following best describes horizontal equity in taxation?
A. Tax rates increase with higher income
B. Taxpayers with equal ability to pay should be taxed equally
C. Tax rates should be uniform across different sectors
D. Tax collection should be decentralized
Answer: B. Taxpayers with equal ability to pay should be taxed equally
Section B: Income Tax Law – Definitions, Scope, and Administration
- The “assessment year” in the Income Tax Act, 1961 refers to:
A. The year in which income is earned
B. The year following the financial year in which income is earned
C. The year in which tax is actually paid
D. The year in which returns are filed
Answer: B. The year following the financial year in which income is earned - Which of the following is defined as “income” under the Income Tax Act, 1961?
A. Only salary income
B. All earnings except gifts
C. All earnings, profits, or gains from whatever source derived
D. Only business and capital gains
Answer: C. All earnings, profits, or gains from whatever source derived - Which section of the Income Tax Act deals with the definition of “assessable income”?
A. Section 10
B. Section 14
C. Section 9
D. Section 115
Answer: C. Section 9 - The term “assessee” under the Income Tax Act includes:
A. Only individuals
B. Individuals, companies, firms, and associations of persons
C. Only companies and firms
D. Only citizens of India
Answer: B. Individuals, companies, firms, and associations of persons - Which of the following is NOT a head of income under the Income Tax Act?
A. Income from salaries
B. Income from house property
C. Income from agriculture
D. Income from capital gains
Answer: C. Income from agriculture
(Note: Income from agriculture is exempt from tax under certain conditions.) - The concept of “source-based taxation” is primarily associated with which section of the Income Tax Act?
A. Section 5
B. Section 9
C. Section 10
D. Section 115
Answer: B. Section 9 - Advance tax is payable when the tax liability exceeds:
A. ₹5,000
B. ₹10,000
C. ₹50,000
D. ₹1,00,000
Answer: B. ₹10,000 - Who is responsible for deducting tax at source (TDS) under the Income Tax Act?
A. The recipient of income
B. The Central Board of Direct Taxes
C. The payer of income
D. The tax consultant
Answer: C. The payer of income - Which of the following incomes is subject to “minimum alternate tax” (MAT)?
A. Income of salaried individuals
B. Income of companies
C. Income of firms
D. Agricultural income
Answer: B. Income of companies - Under the Income Tax Act, the “normal tax” and “surcharge” are applicable to which type of taxpayers?
A. Only resident individuals
B. Only non-resident taxpayers
C. Companies and non-individual entities
D. All taxpayers irrespective of income
Answer: C. Companies and non-individual entities
Section C: Income Tax Assessment and Dispute Resolution
- The process of computing taxable income and arriving at the tax liability is known as:
A. Assessment
B. Collection
C. Prosecution
D. Reconciliation
Answer: A. Assessment - Which of the following is a type of assessment under the Income Tax Act?
A. Summary assessment
B. Best judgment assessment
C. Self-assessment
D. Third-party assessment
Answer: C. Self-assessment - Rectification of mistakes in a tax assessment order can be made under which section?
A. Section 154
B. Section 148
C. Section 142
D. Section 115
Answer: A. Section 154 - An assessment order passed under the Income Tax Act is considered “definitive” after the expiry of:
A. 1 year from the assessment year
B. 3 years from the end of the assessment year
C. 5 years from the date of assessment
D. 10 years from the filing of return
Answer: B. 3 years from the end of the assessment year - Which tribunal adjudicates disputes related to income tax matters?
A. National Company Law Tribunal
B. Customs, Excise and Service Tax Appellate Tribunal
C. Income Tax Appellate Tribunal (ITAT)
D. Competition Appellate Tribunal
Answer: C. Income Tax Appellate Tribunal (ITAT) - Under the Income Tax Act, a reassessment can be initiated if: (except in cases of fraud)
A. New evidence comes to light within three years
B. The taxpayer requests a review
C. The Assessing Officer discovers income escaping assessment
D. The ITAT directs a fresh assessment
Answer: C. The Assessing Officer discovers income escaping assessment - Which section of the Income Tax Act deals with penalties for concealment of income?
A. Section 270A
B. Section 271A
C. Section 272
D. Section 234
Answer: A. Section 270A - Under the Income Tax Act, which term describes the interest charged on delayed tax payments?
A. Surcharge
B. Penalty
C. Interest for deferment
D. Interest for late payment of taxes
Answer: D. Interest for late payment of taxes - Which of the following authorities is empowered to conduct search and seizure under the Income Tax Act?
A. Central Board of Direct Taxes (CBDT)
B. Income Tax Department
C. Enforcement Directorate
D. Reserve Bank of India
Answer: B. Income Tax Department - In case of any dispute regarding tax refunds, the applicant can file an appeal under which section?
A. Section 154
B. Section 237
C. Section 245
D. Section 271
Answer: B. Section 237
Section D: Indirect Taxes – GST and Other Indirect Tax Laws
- GST stands for:
A. Government Sales Tax
B. General Service Tax
C. Goods and Services Tax
D. Goods, Services and Transactions Tax
Answer: C. Goods and Services Tax - Which of the following is NOT a component of GST in India?
A. CGST
B. SGST
C. IGST
D. UTGST
Answer: D. UTGST
(Note: UTGST is applicable in Union Territories but is not a distinct component like CGST, SGST, and IGST.) - Under GST, which of the following is considered a “supply”?
A. Mere transportation of goods
B. Transfer of goods for a consideration
C. Storage of goods
D. Gift without any consideration
Answer: B. Transfer of goods for a consideration - Which document is issued by a registered taxpayer as evidence of inward supply of goods or services under GST?
A. Tax Invoice
B. Delivery Challan
C. Bill of Supply
D. Credit Note
Answer: A. Tax Invoice - Which of the following taxes was subsumed under GST?
A. Excise Duty
B. Stamp Duty
C. Wealth Tax
D. Capital Gains Tax
Answer: A. Excise Duty - Input Tax Credit (ITC) under GST can be availed on:
A. Goods purchased for personal use
B. Goods and services used for business purposes
C. All types of purchases
D. Only on exports
Answer: B. Goods and services used for business purposes - Which of the following is responsible for the administration of GST at the national level?
A. Central Board of Indirect Taxes and Customs (CBIC)
B. Income Tax Department
C. State Excise Departments
D. Reserve Bank of India
Answer: A. Central Board of Indirect Taxes and Customs (CBIC) - The threshold limit for registration under GST for a service provider (in most states) is:
A. ₹5 lakh
B. ₹10 lakh
C. ₹20 lakh
D. ₹40 lakh
Answer: A. ₹5 lakh
(Note: For goods, the limit is typically higher; however, service providers often have a lower threshold.) - Under GST, the tax payable on inter-state supplies is classified as:
A. CGST
B. SGST
C. IGST
D. UTGST
Answer: C. IGST - The concept of “reverse charge mechanism” under GST means:
A. Supplier collects tax from the recipient
B. Recipient is liable to pay tax instead of the supplier
C. Tax is levied twice on a single transaction
D. The tax rate is reversed between CGST and SGST
Answer: B. Recipient is liable to pay tax instead of the supplier
Section E: Special Provisions, International Taxation and Tax Treaties
- Double Taxation Avoidance Agreements (DTAA) are intended to:
A. Prevent tax evasion by local businesses
B. Eliminate double taxation on the same income in two different countries
C. Increase tax revenue for the government
D. Ensure all global income is taxed at home
Answer: B. Eliminate double taxation on the same income in two different countries - Which organization plays a key role in formulating international tax standards?
A. World Trade Organization (WTO)
B. International Monetary Fund (IMF)
C. Organisation for Economic Co-operation and Development (OECD)
D. World Bank
Answer: C. Organisation for Economic Co-operation and Development (OECD) - The term “permanent establishment” in international taxation refers to:
A. A fixed place of business through which a company conducts business
B. A temporary business setup in a foreign country
C. Any business visit abroad by a company representative
D. A subsidiary company registered in a foreign jurisdiction
Answer: A. A fixed place of business through which a company conducts business - Which of the following is a typical benefit provided under a DTAA?
A. Exemption from all taxes in both countries
B. Credit for tax paid in one country against tax liability in the other
C. Lower income tax rates for all individuals
D. Waiver of GST on imported goods
Answer: B. Credit for tax paid in one country against tax liability in the other - In the context of international taxation, “transfer pricing” refers to:
A. Pricing of goods and services between related business entities
B. Setting tax rates for cross-border transactions
C. Determining export and import duties
D. Pricing strategies for domestic sales
Answer: A. Pricing of goods and services between related business entities - Which section of the Income Tax Act deals with provisions related to international taxation and DTAA benefits?
A. Section 90 and 91
B. Section 10 and 11
C. Section 80 and 81
D. Section 115 and 116
Answer: A. Section 90 and 91 - Tax residency for individuals in India is determined based on the number of days of stay in a year. Generally, an individual is considered resident if he/she stays in India for at least:
A. 60 days
B. 120 days
C. 182 days
D. 240 days
Answer: C. 182 days - In international tax law, “withholding tax” is a mechanism to:
A. Collect tax at source on cross-border payments
B. Exempt foreign investors from domestic taxation
C. Defer tax liability until the end of the financial year
D. Impose additional tax on domestic investors
Answer: A. Collect tax at source on cross-border payments - Which of the following is NOT a typical objective of DTAA agreements?
A. To prevent fiscal evasion
B. To promote international trade
C. To provide relief from double taxation
D. To standardize domestic tax rates
Answer: D. To standardize domestic tax rates - The “Beneficial Owner” concept in tax treaties refers to:
A. The legal owner of the asset
B. The ultimate owner who enjoys the benefits of income
C. The tax collector in the country of residence
D. The trustee holding assets on behalf of another
Answer: B. The ultimate owner who enjoys the benefits of income
Section F: Tax Administration, Compliance and Enforcement
- Tax evasion is best defined as:
A. Legal methods to reduce tax liability
B. Illegal practices to avoid paying taxes
C. Delayed payment of taxes
D. Filing returns beyond the due date
Answer: B. Illegal practices to avoid paying taxes - Which of the following is a common measure to ensure tax compliance?
A. Increased discretionary powers for taxpayers
B. Strict penalty provisions and interest for late payments
C. Exempting high-income individuals
D. Eliminating all audits
Answer: B. Strict penalty provisions and interest for late payments - Under the Income Tax Act, failure to file a return within the prescribed time attracts:
A. A surcharge only
B. A penalty under Section 234F
C. Rejection of the assessment order
D. Immediate prosecution
Answer: B. A penalty under Section 234F - Which of the following is a tool used by tax authorities to detect tax evasion?
A. Data analytics and matching of information
B. Self-certification by taxpayers
C. Random relaxation of penalties
D. Voluntary disclosure of tax liabilities
Answer: A. Data analytics and matching of information - The term “tax audit” generally refers to:
A. An internal review conducted by the taxpayer
B. An examination of a taxpayer’s records by the tax authorities
C. A review of a company’s financial performance
D. An assessment of the quality of tax laws
Answer: B. An examination of a taxpayer’s records by the tax authorities - Which of the following is a role of the Central Board of Direct Taxes (CBDT)?
A. Framing policy and administering the Income Tax Act
B. Determining GST rates
C. Approving DTAA agreements
D. Conducting criminal investigations in tax evasion cases
Answer: A. Framing policy and administering the Income Tax Act - Tax litigation in India is primarily handled by:
A. District Courts
B. High Courts
C. Specialized tribunals like the ITAT
D. Supreme Court only
Answer: C. Specialized tribunals like the ITAT - Which of the following is an example of “tax planning” that is legal?
A. Underreporting income
B. Claiming deductions and exemptions provided under law
C. Concealing income sources
D. Creating fictitious transactions
Answer: B. Claiming deductions and exemptions provided under law - The term “Advance Ruling” in tax matters refers to:
A. A ruling issued by a taxpayer on expected tax liability
B. A binding decision provided by tax authorities regarding complex tax issues before transactions occur
C. An appellate order after tax assessment
D. A ruling issued by the Supreme Court after litigation
Answer: B. A binding decision provided by tax authorities regarding complex tax issues before transactions occur - Which of the following best describes “tax gap”?
A. The difference between tax rates and actual tax collected
B. The difference between the amount of tax owed and the amount actually paid
C. The time lag between tax collection and disbursement
D. The difference between direct and indirect taxes
Answer: B. The difference between the amount of tax owed and the amount actually paid
Section G: Special Topics and Recent Developments
- Which of the following provisions was introduced to counter base erosion and profit shifting (BEPS) in India?
A. Section 80C deductions
B. Country-by-Country Reporting (CbCR)
C. Dividend distribution tax
D. Minimum Alternate Tax (MAT)
Answer: B. Country-by-Country Reporting (CbCR) - The “General Anti-Avoidance Rule” (GAAR) is aimed at:
A. Providing tax incentives for new businesses
B. Preventing abusive tax avoidance arrangements
C. Ensuring uniform tax rates across all income groups
D. Facilitating tax refunds
Answer: B. Preventing abusive tax avoidance arrangements - Which of the following is NOT a characteristic of GAAR?
A. It applies retrospectively in all cases
B. It targets transactions lacking substantial commercial purpose
C. It provides criteria to challenge artificial arrangements
D. It is aimed at preserving the tax base
Answer: A. It applies retrospectively in all cases - In the context of taxation, “tax incidence” refers to:
A. The legal responsibility to pay tax
B. The actual economic burden of a tax on individuals
C. The procedure for tax collection
D. The rate at which tax is levied
Answer: B. The actual economic burden of a tax on individuals - The introduction of digitalization in tax administration has primarily led to:
A. Increased physical paperwork
B. Enhanced transparency and efficiency
C. Reduced taxpayer compliance
D. Increased manual errors
Answer: B. Enhanced transparency and efficiency - Which of the following is an advantage of e-filing of tax returns?
A. Increased complexity of procedures
B. Faster processing and quicker refunds
C. Higher chance of manual errors
D. Reduced accessibility for taxpayers
Answer: B. Faster processing and quicker refunds - The “Equalisation Levy” is primarily imposed on:
A. Domestic e-commerce companies
B. Foreign digital companies earning revenue in India
C. Local brick-and-mortar stores
D. Service providers in the tourism industry
Answer: B. Foreign digital companies earning revenue in India - Which of the following developments is a major focus in recent tax reforms in India?
A. Increasing the number of tax brackets without exemptions
B. Simplifying compliance and broadening the tax base
C. Enhancing the complexity of tax laws
D. Eliminating all tax incentives
Answer: B. Simplifying compliance and broadening the tax base - “Tax Incentives” are often provided to encourage:
A. Tax evasion
B. Investment in certain sectors or regions
C. Increased import duties
D. Non-compliance with tax regulations
Answer: B. Investment in certain sectors or regions - Which international body’s recommendations have significantly influenced India’s tax policy reforms?
A. WTO
B. OECD
C. UNCTAD
D. IMF
Answer: B. OECD
Section H: Conceptual and Analytical Questions
- Which of the following statements correctly distinguishes between tax avoidance and tax evasion?
A. Both are illegal practices
B. Tax avoidance is legal while tax evasion is illegal
C. Both are legal methods to reduce tax liability
D. Tax avoidance involves concealing income
Answer: B. Tax avoidance is legal while tax evasion is illegal - “Exempt income” under the Income Tax Act refers to income that is:
A. Not taxable at all
B. Taxable at a lower rate
C. Taxed after adjustments
D. Subject to a special surcharge
Answer: A. Not taxable at all - The principle of “self-assessment” in income tax implies that:
A. Tax authorities calculate the tax liability for the taxpayer
B. Taxpayers determine their own tax liability and pay accordingly before assessment by authorities
C. Only professional accountants can calculate tax
D. Tax assessment is done only after the filing of returns
Answer: B. Taxpayers determine their own tax liability and pay accordingly before assessment by authorities - Which of the following is an example of a “disguised distribution” in tax law?
A. A bonus given as salary
B. Excessive remuneration paid to promoters in a company
C. A regular dividend declared by a company
D. A government grant provided to a business
Answer: B. Excessive remuneration paid to promoters in a company - In tax law, “set-off” refers to:
A. The cancellation of tax credits
B. The deduction of losses from income
C. The adjustment of tax liability by subtracting certain losses or credits
D. A method to delay tax payment
Answer: C. The adjustment of tax liability by subtracting certain losses or credits - Which of the following is a justification for imposing a “surcharge” on tax liability?
A. To provide additional benefits to high-income individuals
B. To ensure higher tax collection from entities with higher income levels
C. To reduce administrative costs
D. To incentivize exports
Answer: B. To ensure higher tax collection from entities with higher income levels - “Tax expenditure” generally refers to:
A. Revenue collected from taxes
B. Losses incurred by the government in tax collection
C. Revenue foregone due to tax exemptions, deductions, or credits
D. The cost of tax administration
Answer: C. Revenue foregone due to tax exemptions, deductions, or credits - Which of the following is an advantage of a progressive tax system?
A. It is regressive and favors low-income groups
B. It places a higher burden on high-income individuals, promoting equity
C. It simplifies the tax computation process
D. It eliminates the need for tax compliance
Answer: B. It places a higher burden on high-income individuals, promoting equity - Which of the following statements is true about “advance tax”?
A. It is payable only after the end of the financial year
B. It is collected in installments during the financial year
C. It is applicable only to salaried individuals
D. It is an optional payment method
Answer: B. It is collected in installments during the financial year - The “Taxpayer’s Charter” is aimed at:
A. Increasing penalties for non-compliance
B. Defining the rights and obligations of taxpayers
C. Restricting taxpayer access to tax information
D. Expanding the tax collection authority
Answer: B. Defining the rights and obligations of taxpayers
Section I: Applied Aspects and Case-Based Questions
- If an individual earns income from salary, house property, and business, under the Income Tax Act the total income is computed by:
A. Adding all incomes without any adjustments
B. Deducting business losses from salary income only
C. Computing income separately under each head and then aggregating, while considering set-offs and deductions
D. Assessing each income source on a quarterly basis
Answer: C. Computing income separately under each head and then aggregating, while considering set-offs and deductions - A taxpayer who has incurred losses in a business in one financial year can carry forward such losses for set-off against future profits provided that:
A. Losses are from a speculative business only
B. The taxpayer has filed returns within the prescribed due date
C. Losses are greater than income in subsequent years
D. The losses are adjusted against salary income
Answer: B. The taxpayer has filed returns within the prescribed due date - Under GST, a service provider who makes both taxable and exempt supplies is required to:
A. Claim full Input Tax Credit on all purchases
B. Apportion Input Tax Credit between taxable and exempt supplies
C. Pay GST only on taxable supplies
D. File returns only for taxable supplies
Answer: B. Apportion Input Tax Credit between taxable and exempt supplies - If a company receives a dividend from its subsidiary, under the classical system of dividend taxation, the dividend is:
A. Exempt in the hands of the shareholder
B. Taxed as income in the hands of the shareholder
C. Subject to a special dividend tax at the company level
D. Not taxable if reinvested
Answer: B. Taxed as income in the hands of the shareholder
(Note: With changes over time, the taxation of dividends has been reformed; check the latest provisions.) - A non-resident earning income from a business in India would be taxed on:
A. Their global income
B. Income received only in India
C. Income accruing or arising in India
D. Only on dividends
Answer: C. Income accruing or arising in India - When a taxpayer opts for the new tax regime offering concessional rates with no exemptions, the key trade-off is that:
A. They must forgo most of the available deductions and exemptions
B. They are required to pay higher surcharge rates
C. They cannot claim any rebates on tax
D. They are exempt from filing returns
Answer: A. They must forgo most of the available deductions and exemptions - A taxpayer seeking an advance ruling on a complex tax transaction should approach:
A. The Income Tax Appellate Tribunal
B. The Authority for Advance Rulings (AAR) or the designated authority under GST for indirect tax matters
C. The local tax collector’s office
D. The Ministry of Finance directly
Answer: B. The Authority for Advance Rulings (AAR) or the designated authority under GST for indirect tax matters - Which of the following would be considered a “non-taxable” supply under GST?
A. Sale of goods
B. Provision of services for consideration
C. Pure transfer of title of a used asset without any processing
D. Supply of composite goods
Answer: C. Pure transfer of title of a used asset without any processing - If a taxpayer finds an error in his previously filed return, the appropriate course of action is to file:
A. A fresh return for the same year
B. A rectification request under Section 154
C. A revised return under Section 139(5)
D. A protest petition to the ITAT
Answer: C. A revised return under Section 139(5)
(Note: The option may vary with context; often, if within time limits, a revised return is the standard remedy.) - Which of the following situations would likely trigger a scrutiny assessment by the Income Tax Department?
A. Consistent filing of simple returns
B. Discrepancies between reported income and third-party information
C. Timely payment of advance tax
D. Filing returns under the new tax regime
Answer: B. Discrepancies between reported income and third-party information
Section J: Recent Developments, Policy Issues, and Ethical Aspects
- Which recent initiative has significantly contributed to reducing the tax compliance burden for small taxpayers in India?
A. Introduction of a multi-tier tax structure
B. Simplified tax return filing for presumptive taxation schemes
C. Mandatory audit of every return
D. Increased documentation requirements
Answer: B. Simplified tax return filing for presumptive taxation schemes - The concept of “tax morale” refers to:
A. The overall burden of taxation on society
B. The willingness of taxpayers to comply with tax laws
C. The level of taxation imposed on luxury goods
D. The process of imposing additional penalties
Answer: B. The willingness of taxpayers to comply with tax laws - Which of the following is considered an ethical issue in tax planning?
A. Using legal exemptions to reduce tax liability
B. Aggressively exploiting loopholes purely for tax avoidance
C. Investing in tax-saving instruments
D. Claiming legitimate business expenses
Answer: B. Aggressively exploiting loopholes purely for tax avoidance - In recent years, digitization in tax administration has led to:
A. A decrease in taxpayer accountability
B. Greater transparency and reduction in corruption
C. Increased manual intervention in tax calculations
D. Higher processing times for returns
Answer: B. Greater transparency and reduction in corruption - One of the challenges in modern tax administration is:
A. An excess of physical documentation
B. Taxpayer anonymity in digital platforms
C. The complexity of cross-border transactions and digital economy
D. A decrease in global trade
Answer: C. The complexity of cross-border transactions and digital economy - Which of the following measures is used to promote fairness in tax administration?
A. Differential treatment without any criteria
B. Transparent disclosure of tax rules and taxpayer rights
C. Reducing taxpayer education initiatives
D. Limiting taxpayer participation in policy-making
Answer: B. Transparent disclosure of tax rules and taxpayer rights - In tax ethics, “avoidance” is acceptable while “evasion” is not because:
A. Avoidance complies with the law, whereas evasion involves breaking the law
B. Both are illegal practices
C. Evasion results in lower tax revenues for the government
D. Avoidance is not subject to any penalties
Answer: A. Avoidance complies with the law, whereas evasion involves breaking the law - Which of the following is an example of a behavioral change expected from effective tax education programs?
A. Increased complexity in tax planning
B. Higher rates of compliance and timely filing
C. More frequent litigation in tax matters
D. Greater reliance on tax consultants for minor filings
Answer: B. Higher rates of compliance and timely filing - Tax policy reforms are often aimed at:
A. Increasing the administrative burden on taxpayers
B. Balancing revenue requirements with fairness and growth objectives
C. Ensuring that only high-income groups are taxed
D. Eliminating all indirect taxes
Answer: B. Balancing revenue requirements with fairness and growth objectives - The integration of Artificial Intelligence (AI) and data analytics in tax administration primarily seeks to:
A. Increase manual audits
B. Detect anomalies and improve compliance efficiency
C. Replace human tax officials entirely
D. Slow down the processing of tax returns
Answer: B. Detect anomalies and improve compliance efficiency