Household And Personal Taxation - Questions With Correct Solutions

Household And Personal Taxation - Questions With
Correct Solutions

Tax Correct Answer - Tax is a compulsory payment to the government
that is used to fund public services

Tax rate Correct Answer - The tax rate is the percentage of tax which is
charged on income, wealth, goods or service

Tax liability Correct Answer - Your tax liability means the amount of tax
you are required to pay

Direct tax Correct Answer - A direct tax is paid on income as it is earned.
It is paid by the person to whom it is imposed

Indirect taxes Correct Answer - Indirect taxes are paid on income as it is
spent

regressive taxes Correct Answer - Taxes which take a higher percentage
of income from low income earners are said to be regressive

progressive taxes Correct Answer - A progressive tax is one where the
tax rate increases as income increases, so the more you earn, the more you
pay

Pay as you earn income tax Correct Answer - Workers pay tax on all
types of earnings from employment

USC Correct Answer - Incomes over a certain amount are subject to USC
in addition to income tax. The amount of USC a taxpayer is liable for increases
with income level

VAT Correct Answer - VAT is tax on goods and services. Everyone who
buys goods and services in Ireland pays VAT