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SECTION A-YOU MUST ANSWER BOTH QUESTIONS 1 AND 2 Question 1 Adam Smith's Wealth of Nations was published in 1776 and set out four canons of taxation: the desirable characteristics for a tax system, Required (you must answer parts (a) and (b)): (a) Describe each of the four canons of taxation 4 marks (b) Critically appraise the canons of equity, certainty and convenience with relation to the UK income tax system and state which you consider to be the most important of these with respect to young workers, giving reasons. 16 marks (Total marks for question 1: 20 marks) Question 2 (you must answer parts (a) and (b)) (a) Explain the significance of transfer pricing in the context of international corporation tax and discuss why it can give rise to uncertainty as to a company's corporate tax liability. 8 marks (b) Explain and discuss the advantages and disadvantages of a global formulary apportionment approach to transfer pricing, for both a multinational corporation (MNC) and a tax authority. 12 marks (Total marks for question 2: 20 marks)