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November 2017 Examination PAPER 2 Business Taxation and Accounting Principles Part I Suggested Answers11. Interest will be charged from 31 January 2015 and 31 July 2015 on any payments on account

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Taxation of income refers to the process by which governments impose a financial charge on individuals and businesses based on their earnings, which may include wages, salaries, dividends, and other sources of income.

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The purpose of taxation of income is to generate revenue for governments, which is used to fund public services and infrastructure, as well as to redistribute wealth and promote social equity.

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Taxpayers must report their total income, including wages, dividends, interest, capital gains, and any other income sources. Additionally, deductions, credits, and exemptions must be disclosed.

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