ACCA F6: Can You Pass This Taxation Test? Trivia Quiz

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| By LFTC2011

LFTC2011

Community Contributor

Quizzes Created: 7 | Total Attempts: 2,239

Questions: 11 | Attempts: 996 | Updated: Mar 22, 2023

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Questions and Answers

1.

Which of the following is the aim of taxation to discourage:
- A.
  
  Savings
- B.
  
  Donation to Charity
- C.
  
  Motoring
- D.
  
  Investment in Plant & Machinery
Correct Answer
C. Motoring

Explanation
A. Certain savings are tax free hence the taxation encourages savings.
B. Charitable donations are supported under Gift Aid Donations and Payroll Deduction Scheme
C. Correct: Motoring in respect of CO2 emission of cars is taxed and hence discouraged
D. Investment in P&M for business use is favored in Taxation

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2.

Taxation is _____________ where the cost of collection of taxes is relatively lower as compared to the taxes.
- A.
  
  Effective
- B.
  
  Economic
- C.
  
  Electric
- D.
  
  Efficient
Correct Answer
D. Efficient

Explanation
Efficient taxation means cost of collection is minimal against the tax collected.

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3.

A tax collected in the form of TV license fees of GBP 50 per year is an example of ______ tax.
- A.
  
  Flat
- B.
  
  Progressive
- C.
  
  Regressive
- D.
  
  Road
Correct Answer
C. Regressive

Explanation
A. Flat tax is the t ax applied at same rate according to income of individual.
B. Progressive tax is the tax charged at higher rates as a person's income increase.
C. Correct: Tax collected as a percentage of income of an individual as the income increases.
D. Road tax is a type of tax levied on motor owners.

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4.

_______________ is not a tax imposed in UK.
- A.
  
  Sales tax
- B.
  
  Capital gains tax
- C.
  
  Income tax
- D.
  
  Corporation tax
Correct Answer
A. Sales tax

Explanation
Sales tax is applied in UK as "Value Added Tax". All other taxes are impose din UK.

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5.

_____________ is an example of indirect tax.
- A.
  
  Income tax
- B.
  
  Corporation tax
- C.
  
  National insurance
- D.
  
  Value added tax
Correct Answer
D. Value added tax

Explanation
Value added tax is indirect as it is collected as you spend. All other taxes are based on earnings.

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6.

__________ is an example of capital tax.
- A.
  
  Inheritance tax
- B.
  
  Corporation tax
- C.
  
  Income tax
- D.
  
  National insurance
Correct Answer
A. Inheritance tax

Explanation
Inheritance and capital gains taxes are capital taxes and corporation tax, income tax and national insurance are revenue taxes.

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7.

The administrative function of collection of tax is undertaken by ____________.
- A.
  
  Revenue and Customs Prosecution Office
- B.
  
  Receivables management officers
- C.
  
  HMRC accounts office
- D.
  
  HMRC
Correct Answer
D. HMRC

Explanation
A. Revenue and customs prosecution office provides legal advise and institute and conduct criminal prosecutions in England and Wales where there has been an investigation by HMRC.

B. Officers who collect may be referred to as "Receivable Management Officers"

C. Refers unpaid amount to "Receivable Management Officers"

D. Correct: The administrative function for the collection of tax is undertaken by Her Majesty's Revenue and Customs.

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8.

The complex cases are heard by __________.
- A.
  
  First Tier tribunal
- B.
  
  Second Tier Tribunal
- C.
  
  Upper tribunal
- D.
  
  Appeal Tribunal
Correct Answer
C. Upper tribunal

Explanation
First Tier tribunal caters most cases except for complex cases which are heard by the upper tier tribunal which also caters for appeals against the decision of first tier tribunal.

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9.

HMRC issues ______________ setting out how they intend to apply the law.
- A.
  
  Acts of parliament
- B.
  
  Statements of practice
- C.
  
  Explanatory leaflets
- D.
  
  Revenue and customs brief
Correct Answer
B. Statements of practice

Explanation
Acts of parliament is statute. Statements of practice express how HMRC intends to apply law. Explanatory leaflets explain various rules. Revenue and customs brief gives view point of HMRC on certain issues.

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10.

___________ are on particular types of business.
- A.
  
  Statements of practice
- B.
  
  Business economic notes
- C.
  
  Internal guidance
- D.
  
  Working together
Correct Answer
B. Business economic notes

Explanation
Business economic notes describe tax law regarding particular businesses (like education)

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11.

An agreement between UK government and USA government regarding taxation of individual resident in UK and earning from USA is called _______________.
- A.
  
  Double income treaty
- B.
  
  Double taxation relief
- C.
  
  Double taxation treaty
- D.
  
  Double taxation ACT
Correct Answer
C. Double taxation treaty

Explanation
Double taxation treaty is a specific agreement signed between two countries. DTR or Double Taxation Relief is available when there is no Double taxation treaty.

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Current Version
Mar 22, 2023

Quiz Edited by
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Feb 11, 2012

Quiz Created by
LFTC2011

ACCA F6: Can You Pass This Taxation Test? Trivia Quiz

Which of the following is the aim of taxation to discourage:

Taxation is _____________ where the cost of collection of taxes is relatively lower as compared to the taxes.

A tax collected in the form of TV license fees of GBP 50 per year is an example of ______ tax.

_______________ is not a tax imposed in UK.

_____________ is an example of indirect tax.

__________ is an example of capital tax.

The administrative function of collection of tax is undertaken by ____________.

The complex cases are heard by __________.

HMRC issues ______________ setting out how they intend to apply the law.

___________ are on particular types of business.

An agreement between UK government and USA government regarding taxation of individual resident in UK and earning from USA is called _______________.