PRINCIPLES OF TAXATION FOR BUSINESS AND INVESTMENT PLANNING 2026 CERTIFICATION EVALUATION TEST PAPER QUESTIONS SOLUTIONS GRADED A PLUS

PRINCIPLES OF TAXATION FOR BUSINESS AND
INVESTMENT PLANNING 2026 CERTIFICATION
EVALUATION TEST PAPER QUESTIONS
SOLUTIONS GRADED A PLUS

◉ juristiction.
Answer: right of government to levy tax on specific person or
organization


◉ taxpayer.
Answer: Any person or organization required by law to pay a tax to
the governmental authority


◉ Tax Base.
Answer: An item, occurrence, transaction, or activity with respect to
which a tax is levied


◉ Tax Formula.
Answer: Tax = Tax Base * Tax Rate


◉ Tax Rate Types.
Answer: Flat or Graduated

, ◉ Types of tax structures.
Answer: Flat, Progressive Graduated, or Regressive Graduated


◉ Progressive Tax.
Answer: Tax increases as income increases (ie. personal income tax
rates)


◉ Regressive Tax.
Answer: Tax decreases as income decreases (ie. social security tax
{don't pay tax on income over 176,100})


◉ Revenue.
Answer: Total Tax Collected


◉ Average Tax Rate.
Answer: Total Tax Paid / Taxable Income


◉ Effective Tax Rate.
Answer: Total Tax Paid / Total Income


◉ Total Income.