Circle the correct option in the case of each of the following statements - Leaving Cert Business - Question 4 - 2020
Question 4
Circle the correct option in the case of each of the following statements.
(i) The profit from the sale of an asset is subject to
capital acquisitions tax / capital... show full transcript
Worked Solution & Example Answer:Circle the correct option in the case of each of the following statements - Leaving Cert Business - Question 4 - 2020
Step 1
(i) The profit from the sale of an asset is subject to
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Answer
The profit from the sale of an asset is subject to capital gains tax. Capital gains tax applies to the profit made from selling certain assets.
Step 2
(ii) The Universal Social Charge (USC) is an example of a
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Answer
The Universal Social Charge (USC) is an example of a progressive tax. This means that it takes a larger percentage from high-income earners compared to low-income earners.
Step 3
(iii) Tax credits increase / reduce the amount of PAYE paid by an employee.
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Tax credits reduce the amount of PAYE (Pay As You Earn) paid by an employee, as they allow for a lower taxable income.
Step 4
(iv) Value Added Tax (VAT) is an example of a
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Value Added Tax (VAT) is an example of an indirect tax. It is not directly imposed on the income of individuals but rather on the sale of goods and services.
Step 5
(v) A holiday voucher worth €3,000 given as a benefit-in-kind is / is not treated as taxable income.
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Answer
A holiday voucher worth €3,000 given as a benefit-in-kind is treated as taxable income, as benefits given by an employer are generally subject to tax.
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