Question

Which of the following statements regarding tax systems is false?        a: A tax base is an item, occurrence, transaction, or activity with respect to which a tax is levied.         b: When designing a tax, governments try to identify tax bases that taxpayers can easily avoid or conceal.         c: A single percentage that applies to the entire tax base is described as a flat rate.         d: With regard to tax systems, the term revenue refers to the total tax collected by the government.

Explain!!!

Answer 1

Answer: Option b) when designing a tax, governments try to identify tax bases that taxpayaers can easily avoid or conceal.

Explanation:

The tax system is very important for applying tax on any idividual properties or salaries and any organizations income. Therefore a tax base is an , occurrence, transaction, or activity with respect to which a tax is levied.

• A single percentage that applies to the entire tax base is described as a flat rate.
• With regard to tax systems, the term revenue refers to the total tax collected by the government.

Therefore, When designing a tax, governments try to identify tax bases that taxpayers can easily avoid or conceal is a false in tax system.

Any government did not want to conceal or avoid of taxes.

Thus option b is correct and remaining given options are incorrect.