Photo AI
The following information relates to the main sources of taxation received by the Irish Government in 2012: Income Tax €15 billion VAT €10 billion Corporation Tax €4 billion Excise Duties €5 billion (A) Draft a Bar Chart to represent the above information - Leaving Cert Business - Question A - 2013
Question A
The following information relates to the main sources of taxation received by the Irish Government in 2012: Income Tax €15 billion VAT €10 billion Corporation Tax €... show full transcript
Worked Solution & Example Answer:The following information relates to the main sources of taxation received by the Irish Government in 2012: Income Tax €15 billion VAT €10 billion Corporation Tax €4 billion Excise Duties €5 billion (A) Draft a Bar Chart to represent the above information - Leaving Cert Business - Question A - 2013
Step 1
Draft a Bar Chart to represent the above information.
Answer
To create a bar chart representing the sources of taxation received by the Irish Government in 2012, follow these steps:
- Title: Label the chart as 'Taxation Received by Irish Government in 2012'.
- Axes: The x-axis will represent the different types of taxes (Income Tax, VAT, Corporation Tax, and Excise Duties), and the y-axis will represent the amount of tax collected in billions of euros.
- Bars: Draw bars for each type of tax:
- Income Tax: €15 billion
- VAT: €10 billion
- Corporation Tax: €4 billion
- Excise Duties: €5 billion
- Labels: Ensure each bar is labeled with the respective tax type and the amount it represents.
Step 2
Outline three reasons why the Government collects tax.
Answer
Governments collect tax for several reasons:
-
Provision of Services: Taxes fund essential services such as healthcare, education, transportation, and public safety, ensuring that citizens receive necessary support and infrastructure.
-
Social Protection: Taxes are crucial for providing social welfare benefits like unemployment support, pensions, and child benefits, which help individuals during times of need.
-
Economic Stability: By collecting taxes, the government can manage the national budget, fulfilling its role in stabilizing the economy and reducing public debt.
Step 3
Outline two effects on Irish business of increases in taxation.
Answer
Increases in taxation can have significant effects on Irish businesses:
-
Decreased Disposable Income: Higher taxes can lead to a loss of sales because consumers have less disposable income to spend, affecting overall revenue for businesses.
-
Increased Costs: Businesses may face increased operational costs due to higher taxes on profits. This could lead to higher prices for consumers or reduced profit margins for the companies.
Step 4
Outline two advantages to Ireland of membership of the European Union (EU).
Answer
Membership of the EU offers several advantages to Ireland:
-
Access to a Single Market: Ireland benefits from access to a market of over 500 million consumers, enhancing trade opportunities for Irish businesses.
-
Funding and Infrastructure: The EU provides financial support for infrastructure projects which can improve national transport and public facilities, fostering economic growth.
Step 5
Name two EU institutions and explain the role of one of them.
Answer
Two key EU institutions are:
- European Commission
- European Parliament
Role of the European Commission: The European Commission is responsible for proposing and enforcing EU laws. It manages the EU budget, negotiates international agreements, and plays a key role in the day-to-day administration of the EU. The Commission acts in the interest of the EU as a whole and works independently of the member states.