Second Year Test 1 Flashcards

1
Q

Define the term taxation

A

Taxation is the way the government collects money to pay for public services

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2
Q

Who is responsible for collecting tax

A

The office of the revenue commissioner is the state body responsible for collecting all tax’s in the Republic of Ireland

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3
Q

What is progressive tax

A

Progressive tax is one where the tax rate increases as income increases. The more you earn the more taxation you pay

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4
Q

Define the term regressive taxation

A

Regressive taxation are tax’s that affect low income earners by taking a high percentage of income

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5
Q

What is direct tax

A

Direct tax is paid on income earned. Eg. PAYE is deducted from your wages

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6
Q

Define the word dirt

A

Dirt is a tax on the interest you earn on your savings

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7
Q

Define the term PAYE

A

PAYE is tax payed on the income that you have earned

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8
Q

What is self assessed income

A

Those who are self employed or earn income pay this tax

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9
Q

What is USC

A

USC is tax payed in addition to PAYE and everyone has to pay it

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10
Q

Define the term VAT

A

VAT(value added tax) is a tax on goods and services. Eg.bread

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11
Q

What are custom duties

A

Custom duties is tax on imported goods from outside the EU

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12
Q

Define the term excise duties

A

Excise duties is a tax on certain goods. Eg. Petrol and diesel

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13
Q

What is local property tax

A

Tax payed by owners of residential properties

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14
Q

What is stamp duty

A

It is tax charged on some written documents. Eg. If you want to buy a house and have saved up you will have to save up extra money to pay this tax

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15
Q

What is motor tax

A

Tax charged on motor vehicles. Eg. Cars

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16
Q

Define the term vehicle registration tax

A

It is a once off tax payed for new cars

17
Q

What is deposit interest retention tax

A

It is tax earned on your savings

18
Q

Define the term capital gains tax

A

Capital gains tax is if you by a share of a company and sell it you will have to pay tax on that

19
Q

What is capital acquisition tax

A

It is a tax on money you inherit left to you be someone over a certain amount

20
Q

What is tax evasion

A

Tax evasion is illegal and usually happens when people declare some or all of their income

21
Q

Define the term tax avoidance

A

Tax avoidance is perfectly legal.eg. Revenue allows eligible taxpayers to claim certain tax credits

22
Q

What is government revenue

A

Government revenue refers to all money received by the government

23
Q

Define the term current revenue

A

Current revenue is money received by the government on a regular ongoing or day to day basis. Most of this revenue comes from taxation. Eg VAT

24
Q

Define the term capital revenue

A

Capital revenue is money received on an irregular or once off basis. This is mainly non-tax revenue. Eg. EU grante

25
Q

Give me 3 examples of government capital expenditure

A

Public transport eg. Building new roads,health eg. Building new hospitals and education eg. Building schools

26
Q

What is a budget deficit

A

A budget deficit occurs when planned expenditure is greater than expected revenue. This suggests that the government is living beyond its means and will have to increase revenue or borrow money

27
Q

Define the term national budget

A

A national budget is an annual plan for what the governments planned revenue and expenditure

28
Q

What is the need for a national budget

A

It outlines the general economic Changes the government proposes to make on tax’s and spending

29
Q

Give 3 examples of capital government revenue

A

EU Grants,Sale of semi state bodies and dividends from semi state bodies

30
Q

Explain the term EU grants

A

EU grants is money given to Ireland from the European Union for specific projects eg roads

31
Q

What is a sale of semi state bodies

A

It’s income from the sale or part sale of a semi state company

32
Q

Explain the term dividends from semi state bodies

A

This is the governments share of the profits made by a semi state body

33
Q

Explain two types of government current expenditure

A
  1. Wages and salaries the government are responsible for them to teachers healthcare workers and many others
  2. Social welfare is payment’s made weekly to people who are entitled to receive them. Eg. Child benefit
34
Q

Explain two types of government capital expenditure

A
  1. Equipment: the government provides it for government buildings eg. Garda cars
  2. Infrastructure: the government is responsible to provide the the basic facilities and services for a community eg. Roads and parks
35
Q

What is corporation tax

A

Tax an the a companies profits

36
Q

What is income tax

A

Income tax is tax on your wages and salaries

37
Q

What is PRSI

A

PRSI is tax you pay so that you are entitled to social welfare payments if you need them. Eg. Jobseeker benefit

38
Q

What does dirt stand for

A

Deposit Interest Retention Tax