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Question 7 1 Point The income tax system taxes income and not capital in order to achieve which policy objective

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Question 7 1 Point The income tax system taxes income and not capital in order to achieve which policy objective. A To prevent tax avoidance B To ensure that wealth is not taxed and provide taxpayers with the incentive to generate wealth To make tax collection cheaper D) To make tax collection easier
Question 8 1 Point Nicholas is a retailer who had $57,000 of trading stock on hand at the start of the current income year. This stock was valued at cost. He purchased $120,000 of trading stock during the year and had sales of $190,000 in trading stock during the year. On 30 June 2020 he had $69,000 in trading stock valued at cost. Assuming that Nicholas values his trading stock at cost for tax purposes at the year end, what amount should he include as taxable income for the current year? A) $202,000 B 108,000 C $82,000 D $12,000
Which of the following statements is most correct? A The amount of income tax payable is calculated by multiplying the taxpayer's taxable income by the applicable tax rates and adding any applicable tax offsets B Rates of tax vary depending on the nature of the taxpayer and whether the taxpayer is a resident or a foreign resident The medicare levy applies to all taxpayers D Income tax is only paid by individuals and companies