ACTP 312 - MCQs from Weekly Quizzes and
Tutorials Question and answers rated A+
2025/2026
An individual's Great Aunt dies and leaves A Windfall Gain
the indi- vidual $250,000 which is deposited
to their cheque account which they use for
their day-to-day living ex- penses. The
individual uses some of the money to re- duce
the mortgage on the house in which the
individ- ual and their family live thereby
reducing their monthly cost of living. Due to
the cost of living crisis they leave the balance
of the money in their cheque account to
meet day-to-day living costs. How will the
$250,000 be characterised for income tax
purposes? This is income because the
1. A farmer provides at farm worker with a
farmhouse
to live in. Does the provision of accommodation in the Income Tax Act
2007 treats
farmhouse give rise to income for the farm worker, and the value of
accommoda-
why? tion provided to an
em- ployee as
income.
2. Which of the following is NOT a
characteristic of in- come? Income is something
that is saved from
3. A taxpayer's assessable income is an going out
amount of in- come that is not
All of the above
4. Which of the following is not considered
Excluded in- come?
Reimbursements
amounts paid to
employees
,5. An employee purchases a laptop to use while working No, because the
employ-
from home. Is the person allowed a deduction for this ment limitation
denies a
expenditure? deduction
6. Which of the following is not considered to All of the above
determine if a Permanent Place of Abode
(PPOA) exists?
, ACTP 312 - MCQs from Weekly Quizzes and Tutorials
If an individual is a transitional resident, which income Interest
received on a New
source will be taxable in New Zealand? Zealand bank account
7. An individual will be tax resident in New Zealand if the Has been in
New Zealand
individual: for 183-days or more in a
12-month period
8. Unless there is a specific provision permitting a deduc- Expenditure
incurred in
tion, a person is allowed a deduction for: carrying on a business to
derive assessable
income for which a
deduction is not denied
by a General
Limitation
9. Which of the following amounts of income have
been derived? of the Above
10. Which of the following expenditures is NOT
subject to the Entertainment Expenditure The cost of a dinner and
Limitation? cruise on Sydney
Harbour, Australia, for
senior em- ployees
and business con-
tacts
11. A taxpayer's taxable income is: Annual Gross Income
less Annual Total
Deductions less
Available Tax Losses
12. Richard is a self-employed builder. He borrowed Yes, a deduction is allowed
$50,000 from a bank to buy a Ford Ranger to transport but only to the
, extent of
his tools and materials to worksites. He also business use. The
intends to use the Ranger at the weekends to private limitation will
tow his boat . Is Richard allowed a deduction deny a de- duction to
on the interest incurred, and why? the extent the Ranger
is used privately.
Tutorials Question and answers rated A+
2025/2026
An individual's Great Aunt dies and leaves A Windfall Gain
the indi- vidual $250,000 which is deposited
to their cheque account which they use for
their day-to-day living ex- penses. The
individual uses some of the money to re- duce
the mortgage on the house in which the
individ- ual and their family live thereby
reducing their monthly cost of living. Due to
the cost of living crisis they leave the balance
of the money in their cheque account to
meet day-to-day living costs. How will the
$250,000 be characterised for income tax
purposes? This is income because the
1. A farmer provides at farm worker with a
farmhouse
to live in. Does the provision of accommodation in the Income Tax Act
2007 treats
farmhouse give rise to income for the farm worker, and the value of
accommoda-
why? tion provided to an
em- ployee as
income.
2. Which of the following is NOT a
characteristic of in- come? Income is something
that is saved from
3. A taxpayer's assessable income is an going out
amount of in- come that is not
All of the above
4. Which of the following is not considered
Excluded in- come?
Reimbursements
amounts paid to
employees
,5. An employee purchases a laptop to use while working No, because the
employ-
from home. Is the person allowed a deduction for this ment limitation
denies a
expenditure? deduction
6. Which of the following is not considered to All of the above
determine if a Permanent Place of Abode
(PPOA) exists?
, ACTP 312 - MCQs from Weekly Quizzes and Tutorials
If an individual is a transitional resident, which income Interest
received on a New
source will be taxable in New Zealand? Zealand bank account
7. An individual will be tax resident in New Zealand if the Has been in
New Zealand
individual: for 183-days or more in a
12-month period
8. Unless there is a specific provision permitting a deduc- Expenditure
incurred in
tion, a person is allowed a deduction for: carrying on a business to
derive assessable
income for which a
deduction is not denied
by a General
Limitation
9. Which of the following amounts of income have
been derived? of the Above
10. Which of the following expenditures is NOT
subject to the Entertainment Expenditure The cost of a dinner and
Limitation? cruise on Sydney
Harbour, Australia, for
senior em- ployees
and business con-
tacts
11. A taxpayer's taxable income is: Annual Gross Income
less Annual Total
Deductions less
Available Tax Losses
12. Richard is a self-employed builder. He borrowed Yes, a deduction is allowed
$50,000 from a bank to buy a Ford Ranger to transport but only to the
, extent of
his tools and materials to worksites. He also business use. The
intends to use the Ranger at the weekends to private limitation will
tow his boat . Is Richard allowed a deduction deny a de- duction to
on the interest incurred, and why? the extent the Ranger
is used privately.
