Chapter 1, Problem 2DQ

What is an assessment under the income tax assessment legislation? and why are assessments important?

We tax net income? What economic distortions would occur if we taxed gross receipts?

In your opinion, should “tax arbitrage” be made legal? Discuss and provide examples.

When does tax allocation within a period become necessary?How should this allocation be handled?

In terms of tax policy, what do the following mean? a. Revenue neutrality. b. Sunset provision. c. Indexation.