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Start the planState tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations.
The state tax plan outlined above assumes that
A) federal tax officials will not attempt to collect back taxes in the same manner
B) stiff fines are not the only way to collect past due corporate taxes
C) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are
D) past due taxes cannot be collected without a reduction in penalties
E) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals
OA B
Source: GMAT Prep
The state tax plan outlined above assumes that
A) federal tax officials will not attempt to collect back taxes in the same manner
B) stiff fines are not the only way to collect past due corporate taxes
C) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are
D) past due taxes cannot be collected without a reduction in penalties
E) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals
OA B
Source: GMAT Prep
