New FLASH SALE Dhamaka - Flat 60% Off on All Courses

    Question

    What type of tax is commonly referred to as "paper

    taxes"?
    A Gift tax Correct Answer Incorrect Answer
    B Corporation tax Correct Answer Incorrect Answer
    C Customs duty Correct Answer Incorrect Answer
    D Excise tax Correct Answer Incorrect Answer

    Solution

    Gift tax is often referred to as a "paper tax" because it is a tax on the transfer of wealth or assets, typically in the form of gifts or inheritances, which is documented on paper. It is a tax on the transfer of wealth, rather than a tax on physical goods or services.

    Practice Next

    Relevant for Exams: