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TAXATION BLOCK REVISION MOCK 4 QUESTION ONE (a) Distinguish between tax evasion and tax avoidance. ( 5 marks) (b) The recent debate relating to importation of goods through the port of Mombasa has

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Gather all necessary financial documents such as W-2 forms, 1099 forms, and records of any deductions.

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What is tax evasion and tax?

Tax refers to the mandatory financial charge imposed by the government on its citizens’ income, purchases, or property. Tax evasion, on the other hand, is the illegal act of not reporting income, underreporting income, or inflating deductions to reduce tax obligations.

Who is required to file tax evasion and tax?

All individuals and businesses that earn above a certain income threshold must file tax returns. However, tax evasion is a crime and not something one is required to file, since it's related to illegal activities.

How to fill out tax evasion and tax?

To fill out a tax return, individuals must gather financial records, including income statements and tax documents, and use appropriate forms provided by tax authorities. For tax evasion cases, it generally involves legal representation and can involve a different legal process.

What is the purpose of tax evasion and tax?

The purpose of tax is to fund government operations and public services. Tax evasion undermines this purpose by depriving the government of revenue and is a criminal act meant to avoid legal tax obligations.

What information must be reported on tax evasion and tax?

A tax return must report income, deductions, exemptions, and credits. For potential tax evasion cases, additional information related to unreported income or disallowed deductions may also be investigated.

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