1 Which of the following are characteristics of an efficient tax system?

I Easily understood tax law.

II Equitable tax burden.

III Easily implemented.

IV Provides adequate revenue.

A I, II, III

B I, II, IV

C II, III, IV

D All of the above

2 Which of the following statements is NOT true?

A A tax is regressive if those with low incomes pay a larger share of income in taxes than those with higher incomes.

B A progressive tax requires higher-income individuals to pay a higher share of their income in taxes.

C In the past, Malaysia relied heavily on direct taxes as a revenue source but today, the main source of revenue is from indirect taxes.

D A good tax system should meet the following basic conditions: fairness, adequacy, simplicity, transparency, and administrative ease.

3 Which Government authority in Malaysia administers income tax?

A Inland Revenue Board

B Royal Malaysian Customs

C Ministry of Finance

D Securities Commission

4 Which of the following statement is NOT true?

A Stamp duty exemption is applicable to both Malaysian and non-Malaysian citizens who have yet to own a house.

B Malaysia adopts a territorial scope of taxation.

C In Malaysia, residents and non-residents are taxed only on income accruing and/or derived in Malaysia but are exempted from Malaysian income tax on income remitted from abroad.

D Banking, insurance, sea and air transport businesses whose business income is charged to tax on a worldwide basis, are not exempt from Malaysian tax.

5 The Inland Revenue Board is responsible for the following EXCEPT:

A Income tax

B Stamp duty

C Petroleum income tax act

D Sales tax

6 A person under the Income Tax Act 1967 EXCLUDES:

I Company

II A body of persons

III A limited liability partnership

IV A partnership.

V A corporation

A I and II

B III and IV

C IV

D None of the above