0.51 Question 1 Section 15-2 of the ITAA97 includes in a taxpayer's assessable income: the objective value of certain allowances, gratuities and the like; o the value to the taxpa of certain non-cash benefits: the value to the provider of certain allowances, gratuities and the like; the current market value of non-cash business benefits. Question 2 0.5 pt It is often challenging to use income tax policy to influence social outcomes because: taxation is generally a blunt policy instrument and can have unpredictable effects different governments have different views on what is fair: income tax is hard to understand: it is difficult to predict what the effects of inflation will be. MacBook Air 0.5 pts Question 3 A tax differs from a user charge in a user pays system in that: A user charge is applied to a particular good or service supplied by the government. Auser charge is applied arbitrarily in cases of emergency whereas a tax is applied systematically and according to predetermined principles. The government is obliged to pay interest on monies that it raises through borrowings. The gov nment is obliged to repay the monies that it raises through a tax. D Question 4 0.5 pts In distinguishing between an annuity payment and capital instalments of a purchase price, the courts generally: oc are influenced by the number of instalments to be paid by the taxpayer, look at the parties' agreement to ensure they are acting at arm's length: place importance on whether the parties' agreement identifies a "fixed gross sum": will be governed by the description given by the parties in their agreement