Tax Principles Trivia

1: A proportional tax would take a percentage of income from all groups except which?

Middle income

Low Income

high income

People with no income

Correct! Wrong!

2: An indirect tax is a tax that is charged on:

Income

Spending

Profits

Gains

Correct! Wrong!

3: Corporation rate of tax is an example of

Regressive tax

Progressive tax

Proportionate tax

Progressive tax

Correct! Wrong!

4: It is the privilege of not being imposed a financial obligation to which others are subject to Tax

Tax incentive

Tax exemption

Tax amnesty

Tax credit

Correct! Wrong!

5: Payment of the individual P.A.Y.E is computed using which tax rates

Progressive tax rates

Proportional tax rates

Digressive tax rates

Regressive tax rates

Correct! Wrong!

6: Which of the following is not a canon (Principle) of taxation

Convenience

Compliance

Certainty

Economy

Correct! Wrong!

7: The following are some of the causes of tax evasion EXCEPT which one

Complexity in Tax Law

Support from the government to ensure that their citizens are protected

High Rates of Taxation

Inadequacy of powers

Correct! Wrong!

8: The following are some of the MAJOR factors that influence tax shifting, EXCEPT which one.

Nature of the market

Nature of the tax

Rate of the tax

The standards of living of the individuals

Correct! Wrong!

9: The Itax system used in Kenya relates to the ------ canon of taxation

Simplicity

Convenience

Economy

All of these

Correct! Wrong!

10: The legal means of minimizing the tax to be paid by the individuals refers to:

Tax evasion

Tax transfer

Tax deferment

Tax planning

Correct! Wrong!

11: Which among the following incomes is not taxable

Harambee collections

Gains from employment for services rendered

Profit from business such as trade, manufacture, etc.

Gains from the rights granted for use or occupation of property e.g. rental income or royalty

Correct! Wrong!

12: Which among the following is not a characteristic of tax.

It is a compulsory contribution by the citizens to the government

There are no personal benefits that are expected from the contribution

The contributors always receive special treatment from the government

It is levied to meet public expenditure incurred by the government in the interest of the nation

Correct! Wrong!

13: Which of the following are often claimed to be the GREATEST advantage of an indirect system of taxation?

It helps households to avoid the unemployment trap

It brings many people to the tax net

It can be varied more quickly and easily

It imposes smaller administrative costs

Correct! Wrong!

14: Which of the following is an indirect tax?

Income tax

Corporation tax

Inheritance tax

Value added tax

Correct! Wrong!

15: Which of the following statements is correct

The President is authorized to increase or decrease national internal revenue tax rates

One of the nature of taxation is the reciprocal duties of protection and support between the state and subjects thereof.

Every sovereign government has the inherent power to tax.

Income tax in an indirect tax

Correct! Wrong!

16: Which of the following tax is not applicable in Kenya

Income tax

Capital gains tax

Consumption tax

Wealth tax

Correct! Wrong!

17: Muguna born and raised in Murang’a a spend the entire year 2020 in Boston USA. For purposes of taxation in that year he shall be considered to be

A citizen

A Non resident

A resident

An alien

Correct! Wrong!

18: The following conditions qualify a company to be resident in Kenya except.

If a company has an office in Kenya

If the company was incorporated in Kenya

If the company is controlled from Kenya

If the company has been declared through a gazette notice to be resident in Kenya

Correct! Wrong!

19: The principle Equity in taxation encompasses the following aspects except

Fairness of taxation

Neutrality of taxation

Equality of sacrifice

Equality of contribution

Correct! Wrong!

20: Which of the following is not among the 4Rs of taxation

Repricing

Revenue

Representation

Redistribution

Reward

Correct! Wrong!

21: The following is true about tax residential status except

Has nothing to do with citizenship

A resident person in one year may become nonresident in another

Determines whether a person will be taxed or not

Determines the rates to be applied

Correct! Wrong!

22: Taxes

Are mandatory payments

Are necessary for financing government expenditures

Do not relate directly to the benefit of government goods and services received

Are all of the above

Correct! Wrong!

23: Which type of tax is popularly known as “sin tax”

Customs duty

Excise duty

Value added tax

Betting and lotteries tax

Correct! Wrong!

24: Which of the following entities is not exempt from taxation

Woodworkers trade association

United forces football club

Catholic Church mission school

BBC Bank members club

Correct! Wrong!

25: Which of the following gains is not subject to tax in Kenya

Royalties

Business gains

Inheritance gains

Retirement benefits

Correct! Wrong!

1: A proportional tax would take a percentage of income from all groups except which?

2: An indirect tax is a tax that is charged on:

3: Corporation rate of tax is an example of

4: It is the privilege of not being imposed a financial obligation to which others are subject to Tax

5: Payment of the individual P.A.Y.E is computed using which tax rates

6: Which of the following is not a canon (Principle) of taxation

7: The following are some of the causes of tax evasion EXCEPT which one

8: The following are some of the MAJOR factors that influence tax shifting, EXCEPT which one.

9: The Itax system used in Kenya relates to the ------ canon of taxation

10: The legal means of minimizing the tax to be paid by the individuals refers to:

11: Which among the following incomes is not taxable

12: Which among the following is not a characteristic of tax.

13: Which of the following are often claimed to be the GREATEST advantage of an indirect system of taxation?

14: Which of the following is an indirect tax?

15: Which of the following statements is correct

16: Which of the following tax is not applicable in Kenya

17: Muguna born and raised in Murang’a a spend the entire year 2020 in Boston USA. For purposes of taxation in that year he shall be considered to be

18: The following conditions qualify a company to be resident in Kenya except.

19: The principle Equity in taxation encompasses the following aspects except

20: Which of the following is not among the 4Rs of taxation

21: The following is true about tax residential status except

22: Taxes

23: Which type of tax is popularly known as “sin tax”

24: Which of the following entities is not exempt from taxation

25: Which of the following gains is not subject to tax in Kenya

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