28. Which of the following statements accurately describes a regressive tax? A) A tax which results in higher effective tax rates for higher income taxpayers. B) A tax which results in lower effective tax rates for higher income taxpayers. C) A tax in which the same effective rate applies to all levels of income. D) A tax that is shifted to consumers through price increases on the goods purchased. 29. "Taxpayers who earn $100,000 in dividends should pay the same amount of tax as taxpayers who earn $100,000 in capital gains." This statement reflects which of the following qualitative characteristics of an effective tax system? A) Vertical equity. B) Neutrality. C) Flexibility. D) Horizontal equity. 30. Which of the following statements with respect to tax reference materials is correct? 31. A) Income Tax Folios are a legislative source of guidance. B) Income Tax Regulations are gradually being replaced by Income Tax Folios. C) Interpretation Bulletins are gradually being replaced by Information Circulars. D) The ITA is the most important source of information for dealing with matters related to the federal income tax. Of the following statements related to liability for Canadian income tax, which statement is NOT correct? A) As used in the ITA, the term person refers to individuals, trusts, and corporations. B) Corporations must use the calendar year as their taxation year. C) Part I tax is assessed on residents of Canada. D) Part I tax is assessed on Canadian employment income earned by a non- resident. 32. Which of the following statements is correct? A) When an individual dies in a year, an income tax return must be filed for that year within 6 months of the date of death. B) Only residents of Canada are required to file Canadian income tax returns. C) An individual with business income during the year must pay any income tax balance owing by June 15 of the following year. D) An individual sole proprietor with a business loss for the year may not have to file an income tax return for the year. because there would be no income tax payable.