Multi-Choice Questions on Taxation

For each multi-choice question write the question number (a) to (d) and beside it the option A to D that you consider to be the correct answer. Example: (a) C(a) A person’s annual gross income for a tax year is the total of their assessable income that is allocated to the corresponding:•A Tax year•B Calendar year•C Accounting period•D Income year(b) Sam’s annual gross income is $70,000, his annual total deduction is $45,000 and his available net loss is $30,000. Sam’s net income or net loss for the year is:•A Net income of $40,000•B Net income of $5,000 •C Net income of $25,000•D Net loss of $5,000(c) The income tax liability of a filing taxpayer for a tax year is:•A The total tax withheld from amounts of income included in taxpayer’s annual gross income for the year•B Net income x basic tax rate•C Taxable income x basic tax rate•D Annual gross income x basic tTaxationax rate(d) The general rule for the allocation of a deduction is it is allocated to the income year in which the expenditure or loss is