Tax yourself: a Friday tax quiz ahead of the Tax Day

This post is part of our Entrepreneurial team’s regular series of blogs.

In anticipation of UK’s first “Tax Day” on 23 March, which will see Rishi Sunak outline upcoming consultations and medium-long term strategies, we thought that this week we’d offer a tax-themed pop quiz for a Friday afternoon…

    1. Who said: “The nation should have a tax system that looks like someone designed it on purpose.”?
    2. Who said: “The difference between tax avoidance and tax evasion is the thickness of a prison wall.”?
    3. Who said that taxation should follow the four design principles of ability to pay, certainty, convenience and efficiency?
    4. What is referred to as the £20bn “stealth tax” announced in the Budget?
    5. Which tax is most widely expected to be targeted on Tax Day for a rates rise or simplification that results in further tax being raised?
    6. Prior to income tax, which tax was designed to impose tax relative to the prosperity of the payer?
    7. The excess profits tax, introduced to fund the First World War and on profits above the normal pre-war level, was initially at what rate?
    8. In the first budget after Margaret Thatcher’s election victory in 1979, the top rate of income tax was reduced from 83% to what?
    9. What is the proposed rate of a currently proposed online sales tax?

Tricky? Well, here are the possible answers – see if you can match them up: (Note that there are more answers than questions, so some are red herrings.)

    1. Barack Obama, former US president
    2. Denis Healey, UK Chancellor of the Exchequer 1974 -1979
    3. William Simon, US Treasury Secretary 1974 – 1977
    4. 2%
    5. 60%
    6. Capital gains tax
    7. 50%
    8. A freeze on income tax, capital gains and IHT thresholds/allowances
    9. The poor tax
    10. 5%
    11. The window tax
    12. Inheritance tax
    13. Adam Smith, Scottish economist

Got them? Answers below…

The answers…

 

    1. Who said: “The nation should have a tax system that looks like someone designed it on purpose.”? C – William Simon, US Treasury Secretary 1974-1977 
    2. Who said: “The difference between tax avoidance and tax evasion is the thickness of a prison wall.”? B – Denis Healey, UK Chancellor of the Exchequer 1974 – 1979
    3. Who said that taxation should follow the four design principles of ability to pay, certainty, convenience and efficiency? M – Adam Smith, Scottish economist
    4. What is referred to as the £20bn “stealth tax” announced in the Budget? H – A freeze on income tax, capital gains and IHT thresholds/allowances
    5. Which tax is most widely expected to be targeted on Tax Day for a rates rise or simplification that results in further tax being raised? F – Capital gains tax
    6. Prior to income tax, which tax was designed to impose tax relative to the prosperity of the payer? K – The window tax
    7. The excess profits tax, introduced to fund the First World War and on profits above the normal pre-war level, was initially at what rate? G – 50%
    8. In the first budget after Margaret Thatcher’s election victory in 1979, the top rate of income tax was reduced from 83% to what? E – 60%
    9. What is the proposed rate of a currently proposed online sales tax? D – 2%

 

We hope you enjoyed the quiz. Check back with us for analysis and information about the Tax Day on 23 March.