Note to Instructor There are two versions of this matching problem. The list of key terms is the same in both versions, but the potential definitions given are different.
· Version A is easy, there is only one possible answer for each term.
· Version B is more difficult in that there are additional possible answers that are similar to the correct answers.
The following eight key terms are listed at the end of Chapter 1, Introduction To Federal Taxation In Canada:
A. Fiscal Period
B. Flat Tax System
C. Income Tax Regulations
D. Net Income For Tax Purposes
E. Person
F. Regressive Tax System
G. Tax Expenditures
H. Value Added Tax
The following list contains 14 potential definitions for the preceding key terms.
1. A taxation year that does not exceed 53 weeks.
2. A tax that is assessed on the sale of goods and services at all stages of the production/distribution chain. The tax that an enterprise must collect and pay to the government is offset by input tax credits for the tax paid on the various inputs required to produce or distribute the goods and services.
3. A tax system that applies higher effective rates for individuals with lower incomes and lower effective rates for individuals with higher incomes.
4. The total of net employment income, net business and property income, net taxable capital gains, other sources of income, and other deductions from income.
5. A CRA publication providing their interpretation of various technical issues related to income taxes.
6. A term used in the Income Tax Act to refer to taxable entities.
7. The total of all positive sources of income, including employment income, business and property income, net taxable capital gains, and other sources of income.
8. Foregone tax revenues due to special exemptions, rate reductions, rebates, and credits that reduce the amount of tax that would otherwise be payable.
9. A tax based on the value added to a product at each stage of production or distribution by a particular entity.
10. A tax on income that is applied at the same rate to all taxpayers, without regard to the level of their income.
11. An individual human being.
12. A taxation year that is longer or shorter than 52 weeks.
13. A set of rules concerning administration and enforcement of the Income Tax Act.
14. A tax system that applies higher effective rates for individuals with higher incomes and lower effective rates for individuals with lower incomes.
15. None of the above definitions apply. (This answer can be used more than once.)
Required: For each of the eight key terms listed (A through H), indicate the number of the item (1 through 14) that provides the BEST definition of that term, or, alternatively, that none of the definitions apply (15). Explanations are not required.
Indicate only one number for each key term. No marks will be awarded if you indicate more than one number for any key term.