Question

Sales tax exemptions are construed in favor of the taxpayer

while exceptions are construed broadly in favor of the government.

True or false?

Answer 1

Answer True.

Sales tax exemptions are construed in favor of the taxpayer because it is a predetermined path passed by an act where an assessee can avail benefits of decrease in tax.

In the case of exception, while providing benefit of tax reduction or waiving off, some particualr sections are covered and asked to pay taxes.

Exception

The act of excepting or excluding; exclusion; restriction by taking out something which would otherwise be included, as in a class, statement, rule.

Exemption

An act of exempting, i.e., free from a duty or obligations.