In many countries, capital gains are not taxed until the assets on which the gain has arisen are sold. Which of the following is the most logical explanation of this practice? A B D It assists taxpayers in their tax planning. It ensures the maximum possible revenue into government funds. It is easier to determine an objective tax expense. It is unfair to tax capital gains. [2] Which of the following best explains why many countries do not allow depreciation to be treated as an expense for tax purposes? A B C D Depreciation is not a real expense. The calculation of depreciation allows too much discretion. The tax treatment of depreciation maximises the revenue from corporate tax. There is no relationship between depreciation and cash flows. [2]