Underreporting of incomes is an example of:

a.

Tax planning

b.

Tax Evasion

c.

Tax burden

d.

Tax Avoidance

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Question 2

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How much is the VAT portion of total due amount OMR 2,000,000? Assume that VAT is 5%.

a.

OMR 100,000

b.

OMR 200,000

c.

OMR 95,238.10

d.

OMR 105,236.16

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Which of the following statements is true?

a.

A 5% sales tax on food is an example of direct tax

b.

A 5% sales tax on food is an example of progressive tax

c.

A 5% sales tax on food is an example of regressive tax

d.

Personal income tax is an example of regressive tax

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A retailer buys an article from the wholesaler at OMR 80 and the wholesaler charges a VAT at the prescribed rate of 4%. The retailer fixes the price at OMR 100 and charges VAT at the same rate. What is the price that a consumer has to pay to buy the article?

a.

OMR 1.2

b.

OMR 3.2

c.

None of these

d.

OMR 4

Safeer buys an article from the wholesaler at OMR 125 and pays VAT at the rate of 7%. The Safeer fixes the price of the article at OMR 225 and chargeS VAT at 7% from the consumer. Apply VAT system of the sales tax to calculate the net VAT amount due by safeer.

a.

Cannot be calculated

b.

OMR 8.75

c.

OMR 15.75

d.

OMR 7

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Identify the true statement from the following:

a.

If input tax is less than the output tax, the difference amount can claim back from the Local Tax Authority by the company.

b.

If output tax is less than the input tax, the difference amount is payable to Local Tax Authority by the company.

c.

If input tax is greater than the output tax, the difference amount is payable to Local Tax Authority by the company.

d.

If input tax is greater than the output tax, the difference amount can claim back from the Local Tax Authority by the company.

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A retailer charges VAT on an article at the prescribed rate of 5% from the customer. The listed price of the article is OMR 54. If the retailer has to pay a VAT of OMR 1.460 to government, what was output tax amount to the wholesaler?

a.

OMR 2.7

b.

OMR 4.16

c.

OMR 2.92

d.

OMR 1.24

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If a wholesaler output VAT on an article is OMR 3.6; VAT paid by the retailer to the Tax Authority is OMR 2.7, then what was output VAT to the retailer?

a.

OMR 3.6

b.

OMR 0.9

c.

More information is required to calculate output tax to the retailer

d.

OMR 6.3

heritance Tax is a tax on _______________________ of someone who is died.

a.

the estate, money and possessions

b.

the estate, money, possessions and executor's property

c.

the estate

d.

the estate and money

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A country is following the dual-tax system for lower income group and higher income group. The lower income bracket is up to OMR 5,000 on which 5% tax is charged and higher income bracket is starting over OMR 5,000 on which 15% tax charged. Mr. Said taxable income is calculated as OMR 27,900. The tax liability on his income is:

a.

OMR 4,192.5

b.

OMR 3,435

c.

OMR 3,685

d.

OMR 3,185