F1 Exam Dumps : Financial Reporting

Low cost of collection compared to other forms of taxation.

High yields from the tax.

Encourages consumption of products such as alcohol.

Popular form of tax for the tax payer as it can be reclaimed.

Ensures that the tax levied on all taxpayers is the same irrespective of their spending habits.

Specific unit tax

Ad valorem tax

Direct tax

Single-stage sales tax

Increase tax rates to compensate for losses due to evasion.

Reduce penalties for avoidance.

Reduce requirements to have tax returns audited.

Simplify the tax structure, minimizing allowances and exemptions.