Which Statement Is Correct About the Tax Treatment of Dividend

question 13

Multiple Choice

Which statement is correct about the tax treatment of dividend income and capital gains received inside pension funds?

• A)Dividends are taxable while capital gains are not taxable
• B)Capital gains are taxable while dividends are not taxable
• C)Both dividends and capital gains are taxable
• D)Neither dividends nor capital gains are taxable

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Definitions:

Mimicry

The resemblance of one species to another species or to natural objects, providing protection from predators or other advantages.

Brood Parasitism

A reproductive strategy where one species lays its eggs in the nest of another species, letting the host species raise its offspring.

Indicator Species

Species that serve as a measure for the health of an ecosystem or the presence of certain environmental conditions, often used in conservation and ecological research.

Exotic Species

Species that are introduced to a new environment where they do not naturally occur, often leading to environmental changes and potentially becoming invasive species.