Taxes: TOEIC Practice Test Questions & Answers

Taxes TOEIC Questions Answers Eduhyme

The TOEIC (Test of English for International Communication) is an English language proficiency test designed to assess the English language skills of non-native speakers in a business or professional context. The test is widely used by organizations around the world to evaluate the English language skills of job candidates, employees, and students.

The TOEIC test consists of two parts: the TOEIC Listening and Reading Test and the TOEIC Speaking and Writing Test. The TOEIC Listening and Reading Test is a paper-and-pencil test that consists of multiple-choice questions, while the TOEIC Speaking and Writing Test is a computer-based test that consists of spoken and written responses to prompts.

The test is designed to measure a wide range of English language skills, including listening comprehension, reading comprehension, speaking ability, and writing ability. Overall, the TOEIC is a widely recognized and respected English language proficiency test that is used by organizations around the world to evaluate the English language skills of non-native speakers.

Q&A Topic: Taxes

Taxes are a fundamental aspect of modern economies, serving as a primary source of government revenue and playing a crucial role in funding public services and programs.

Types of Taxes

  • Income Tax: This tax is levied on an individual’s or business’s earnings. The rate often varies with income, with higher-income earners generally paying a higher percentage.
  • Sales Tax: Sales tax is collected on the purchase of goods and services. It can be a fixed percentage of the purchase price or vary by item or service.
  • Property Tax: Property taxes are assessed on the value of real estate and are typically collected by local governments to fund services such as schools and infrastructure.
  • Corporate Tax: Businesses pay a tax on their profits. The rate varies by jurisdiction and can be a significant source of government revenue.
  • Value Added Tax (VAT): Common in many countries, VAT is a consumption tax levied at each stage of production and distribution, ultimately paid by the end consumer.
  • Excise Tax: This tax is imposed on specific goods, such as alcohol, tobacco, and gasoline, to discourage consumption and generate revenue.

Taxes are a cornerstone of government finance, with a far-reaching impact on economies, societies, and individual finances. They serve as a mechanism to fund public services, redistribute wealth, and influence economic behavior. Effective and fair tax policies are essential for a functioning society, but striking the right balance remains a complex and ongoing challenge for policymakers.

Here are some questions that can help you to clear the TOEIC exam:

Q1 If you are self-employed, it is your responsibility to ___________ how much tax you should legally pay.

(a) consider
(b) complete
(c) correct
(d) calculate

Answer: (d) calculate

Q2 I had a letter from the office of the Collector of Taxes telling me that I had to pay back all the money I ___________ over the last 3 years.

(a) due
(b) indebted
(c) owed
(d) owned

Answer: (c) owed

Q3 The arrangement they have is that all the money that has to be paid in tax out of their earnings comes from their ___________ account.

(a) joined
(b) conjoined
(c) joined up
(d) joint

Answer: (d) joint

Q4 Under the current legislation if you are late in paying your taxes, then you have to face a financial ___________.

(a) penalty
(b) punishment
(c) pain
(d) penalize

Answer: (a) penalty

Q5 He is in a terrible rush to complete his tax returns by Tuesday otherwise he won’t be able to reach the ___________.

(a) dead end
(b) deadline
(c) dead date
(d) dead stop

Answer: (b) deadline

Q6 It doesn’t happen very often but I actually got some money from the tax office and with the ___________ I’m going to treat myself.

(a) remake
(b) repeat
(c) refund
(d) respite

Answer: (c) refund

Q7 Before you can claim any money back on overpayment of tax, you have to ___________ an application form.

(a) fill for
(b) fill out
(c) fill through
(d) fill with

Answer: (b) fill out

Q8 You can elect, if you want, to transfer your tax free allowance to your ___________.

(a) spouse
(b) sponsor
(c) spook
(d) spokesperson

Answer: (a) spouse

Q9 Until it’s clearly established which tax group you are in, your employer will be asked to ___________ a certain amount of your pay.

(a) withstand
(b) without
(c) withhold
(d) withal

Answer: (c) withhold

Q10 There have been so many queries about his tax situation that there is now a huge ___________ containing the details in the office.

(a) full
(b) filled
(c) filling
(d) file

Answer: (d) file

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