- 13 Marks
TAX – May 2019 – L2 – Q7a – Introduction to Taxation
Explain key tax terminologies to help Mr. Adele understand business-related taxes.
Question
Mr. Adele has just retired from the public service and is trying to venture into business. He is, however, concerned about the taxes that may affect his new business. As the tax consultant to Mr. Adele, he wants you to explain some terminologies to enable him to have a better understanding of them.
Required:
Explain the following:
(i) Proportional tax and progressive tax (2 Marks)
(ii) Direct tax and indirect tax (2 Marks)
(iii) Statute laws and case laws (2 Marks)
(iv) Franked investment income (3 Marks)
(v) Taxes collectible by local governments (4 Marks)
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