Write TRUE or FALSE after each of the following statements. 1. Customs Duty is a tax on goods imported from outside the European Union. 2. Corporation Tax is applied to profits made by every business in Ireland. 3. A P45 is given to employees when their employment is terminated. 4. The existence of Tax Credits reduces the amount of Universal Social Charge to be paid. 5. Capital Acquisitions Tax is a tax on the profits made on the sale of assets.

Leaving Cert Business Taxation: Write TRUE or FALSE after each o

Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 4 - 2017

Question 4

Write TRUE or FALSE after each of the following statements. 1. Customs Duty is a tax on goods imported from outside the European Union. 2. Corporation Tax is appli... show full transcript

Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 4 - 2017

Step 1

1. Customs Duty is a tax on goods imported from outside the European Union.

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Answer

TRUE. Customs Duty applies to goods imported from outside the EU, serving as a tariff for these transactions.

Step 2

2. Corporation Tax is applied to profits made by every business in Ireland.

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Answer

FALSE. While Corporation Tax is applicable to many businesses in Ireland, it does not apply to all types of businesses, such as sole traders.

Step 3

3. A P45 is given to employees when their employment is terminated.

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Answer

TRUE. A P45 form is issued to employees upon termination of their employment, summarizing their tax contributions.

Step 4

4. The existence of Tax Credits reduces the amount of Universal Social Charge to be paid.

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Answer

FALSE. Tax Credits do not directly reduce the Universal Social Charge, which is based on income rather than tax credits.

Step 5

5. Capital Acquisitions Tax is a tax on the profits made on the sale of assets.

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Answer

FALSE. Capital Acquisitions Tax is levied on the value of gifts or inheritances, not directly on profits made from the sale of assets.

Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 4 - 2017

Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 4 - 2017

1. Customs Duty is a tax on goods imported from outside the European Union.

2. Corporation Tax is applied to profits made by every business in Ireland.

3. A P45 is given to employees when their employment is terminated.

4. The existence of Tax Credits reduces the amount of Universal Social Charge to be paid.

5. Capital Acquisitions Tax is a tax on the profits made on the sale of assets.

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