| Questions |
| Questions |
| 1 | Haig–Simons income or Schanz–Haig–Simons income: | ||
| A) | I = ΔNW where ΔNW = change in net worth | ||
| B) | I = C + ΔNW where C = consumption and ΔNW = change in net worth | ||
| C) | I = I - Ex where I =Total income and Ex = total expenses | ||
| D) | I = Ex + ΔNW where C = consumption and Ex = total expenses | ||
| 2 | Accretion concept of income: | ||
| A) | Income is [1] undeniable accessions to wealth, [2] clearly realized, and [3] over which the taxpayers have complete dominion | ||
| B) | Income is [1] undeniable accessions to wealth, [2] over which the taxpayers have complete dominion | ||
| C) | [1] undeniable accessions to wealth, [2] clearly realized, and [3] over which the taxpayers have ownership | ||
| D) | [1] undeniable accessions to wealth, [2] clearly realized, and [3] over which the taxpayers have legal title | ||
| 3 | Is it legal to tax illegal acts: | ||
| A) | Yes, because legislator (congress) may tax what it also forbids | ||
| B) | No, because legislator should not legalize forbidden activities | ||
| C) | No, it is against public policy | ||
| D) | No, because it is a sphere of criminal, not tax, law | ||
| 4 | Is it needed to legalize prostitution, in order to have possibility to tax it: | ||
| A) | No, because legislator may tax even illegal activities | ||
| B) | Yes | ||
| C) | Yes, since only then there will be duties to pay income and social taxes | ||
| D) | Yes. Because only then prostitutes would enjoin benefits of being member of society and therefore would have duty to pay taxes. | ||
| 5 | According to James case, Is stolen item an income if thief has duty to return it: | ||
| A) | Yes, since thief enjoys the economic benefits of stolen item as his own | ||
| B) | No, since thief has to return it late | ||
| C) | No, since thief has no legal title of stolen items | ||
| D) | No, since it is illegal | ||
| 6 | Illicit enrichment: | ||
| A) | May be only persecuted by criminal law | ||
| B) | May be persecuted by criminal law and taxed | ||
| C) | May be only taxed | ||
| D) | Only civil remedies should be applied | ||
| 7 | “Net worth” method: | ||
| A) | If a taxpayer has more wealth at the end of a given year than at the beginning of that year, and the increase does not result from nontaxable sources such as gifts, loans, and inheritances, then the increase is a measure of taxable income for that year | ||
| B) | If a taxpayer has received income not from nontaxable sources such as gifts, loans, and inheritances, then the income taxable income | ||
| C) | If a taxpayer has more wealth at the end of a given period than at the beginning of that period, and the increase does not result from nontaxable sources such as gifts, loans, and inheritances, then the increase is a measure of taxable income for that period | ||
| D) | If a taxpayer has more wealth at the end of a given year than at the beginning of that year, then the increase is a measure of taxable income for that year | ||
| 8 | “Net worth” method takes into consideration: | ||
| A) | Closing net worth and opening net worth, but not expenditures | ||
| B) | Closing net worth, opening net worth and expenditures | ||
| C) | Only closing net worth and expenditures | ||
| D) | Only opening net worth and expenditures | ||
| 9 | If the defendant claims that the increases in net worth are from non-taxable sources, the burden of introducing evidence on this point: | ||
| A) | Always rest on prosecutor because of presumption of innocence | ||
| B) | Rest on the prosecutor to prove opposite | ||
| C) | Rest on the taxpayer | ||
| D) | Rest on the taxpayer only if prosecutor had proven the opposite | ||
| 10 | Taxation of illegal business (in countries where it is practiced): | ||
| A) | Not allow to deduct fines, penalties, bribes, or illegal kickbacks | ||
| B) | Allow to deduct illegal expenses | ||
| C) | Allow to deduct illegal expenses , since illegal income is taxed | ||
| D) | Not allowe to deduct anything, since it is illegal activity | ||