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2009 WAEC Economics Theory (a) With examples. distinguish between direct and indirect tax, [8 marks]  (b) Explain any four...

Economics
WAEC 2009

(a) With examples. distinguish between direct and indirect tax, [8 marks] 
(b) Explain any four problems of tax collection in any West African country. [12 marks] 

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Explanation

(a )A direct tax is a tax on incomes and properties. Examples include personal income tax, company tax, death duties, inheritance tax, capital gains taxes,etc.
Whereas. An indirect tax is a tax on goods and services. Examples include sales tax, import and export duties. excise tax, purchase tax, value added tax,etc. 

(b)(i) Absence of reliable records of business activities and revenues collected 
    (ii) The prevalence of subsistence production
    (iii) Corruption on the part of tax officials
    (iv) High level of tax evasion and avoidance 
    (v) Ignorance of the Importance of tax payment due to high level of Illiteracy 
    (vi) High cost collecting tax especially poll tax
    (vii) The level of poverty affects the ability of people to pay taxes.
 


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WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts