Penalties That Are Based on a Percentage of the Delinquent

question 11

Multiple Choice

Penalties that are based on a percentage of the delinquent tax are referred toas:

• A)assessable penalties
• B)ad valorem penalties
• C)criminal penalties
• D)nominal penalties

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Definitions:

Benefits Principle

The concept that those who benefit from government services should pay taxes in proportion to the amount of benefits they receive.

Tax Burden

The measure of taxes that individuals or businesses must pay as a portion of their income or profit, reflecting the financial impact of taxation.

Antipoverty Programs

Government initiatives aimed at reducing poverty and improving living standards for the poor through financial aid, education, and job training.

Benefits Principle

A tax policy principle suggesting that taxes should be levied according to the benefits received by the taxpayer from government services.