April 2023

Discussion in 'SP5' started by rlsrachaellouisesmith, Sep 16, 2023.

  1. rlsrachaellouisesmith

    rlsrachaellouisesmith Ton up Member

    Hi

    In Q7(i) the solution states that the proposed tax would reduce the avoidance of tax, why is this?

    Thank you
     
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    If people are avoiding tax by opting for investments that give a capital gain, then taxing people on total return would remove the opportunity to do this. So tax avoidance would be reduced.
     
  3. rlsrachaellouisesmith

    rlsrachaellouisesmith Ton up Member

    Oh, so simple! Thank you.
     

Share This Page