Note to Instructor There are two versions of this matching problem. The list of
key terms is the same in both versions, but the potential definitions given are
different.
·
Version A is easy, there is
only one possible answer for each term.
·
Version B is more difficult in
that there are additional possible answers that are similar to the correct
answers.
The following eight key terms are listed
at the end of Chapter 1, âIntroduction To Federal Taxation In Canadaâ:
A. Fiscal
Period
B. Flat
Tax System
C. Income
Tax Regulations
D. Net
Income For Tax Purposes
E. Person
F. Regressive
Tax System
G. Tax
Expenditures
H. Value
Added Tax
The following list contains 14 potential
definitions for the preceding key terms.
1. A
taxation year that does not exceed 53 weeks.
2. A
tax that is assessed on the sale of goods and services at all stages of the
production/distribution chain. The tax that an enterprise must collect
and pay to the government is offset by input tax credits for the tax paid on
the various inputs required to produce or distribute the goods and services.
3. A
tax system that applies higher effective rates for individuals with lower
incomes and lower effective rates for individuals with higher incomes.
4. The
total of net employment income, net business and property income, net taxable
capital gains, other sources of income, and other deductions from income.
5. A
CRA publication providing their interpretation of various technical issues
related to income taxes.
6. A
term used in the Income Tax Act to refer to taxable entities.
7. The
total of all positive sources of income, including employment income, business
and property income, net taxable capital gains, and other sources of income.
8. Foregone
tax revenues due to special exemptions, rate reductions, rebates, and credits
that reduce the amount of tax that would otherwise be payable.
9. A
tax based on the value added to a product at each stage of production or
distribution by a particular entity.
10. A
tax on income that is applied at the same rate to all taxpayers, without regard
to the level of their income.
11. An
individual human being.
12. A
taxation year that is longer or shorter than 52 weeks.
13. A
set of rules concerning administration and enforcement of the Income Tax Act.
14. A
tax system that applies higher effective rates for individuals with higher
incomes and lower effective rates for individuals with lower incomes.
15. None
of the above definitions apply. (This answer can be used more than once.)
Required: For each of the eight key
terms listed (A through H), indicate the number of the item (1 through 14) that
provides the BEST definition of that term, or, alternatively, that none
of the definitions apply (15). Explanations are not required.
Indicate only one number for each key
term. No marks will be awarded if you indicate more than one number for
any key term.
