intro

Question 1

Direct taxes:

Answer 1

Paid by those who generate the funds to pay the tax eg, income tax

Question 2

Indirect taxes

Answer 2

Relate to consumption.

Question 3

Progressive taxes

Answer 3

Rise as a proportion of income as that income rises

Question 4

Regressive taxes

Answer 4

Rise as a proportion of income as income falls

Question 5

Unit taxes

Answer 5

Calculated as a flat rate per item, regardless of value

Question 6

Value taxes

Answer 6

Based on a percentage of the value of the item

Question 7

Capital taxes:

Answer 7

A tax based on the value of capital assets or wealth, for example capital gains tax (CGT) or Inheritance tax (IHT)

Question 8

Transaction-based taxes:

Answer 8

Taxes that are incurred due to a specific transaction taking place, for example stamp taxes on the purchase of land and buildings or shares.

Question 9

Tax year:

Answer 9

6 April in one calendar year to 5 April in the next calendar year.

Question 10

Company:

Answer 10

A company is a legal person formed by incorporation under the Companies Acts

Question 11

Financial year:

Answer 11

1 April in one calendar year to 31 March in the next calendar year