In most developed countries employers deduct the tax from employees’ pay each month and then pay the tax to the tax authorities on behalf of the employee on a monthly basis.
Which THREE of the following are advantages of this system to the employee?
A . The tax is collected earlier than systems that assess earnings at the end of the year.
B . The payment of tax is easier as the tax is deducted before the net salary is paid to the employee.
C . Most of the administration costs are borne by the employees.
D . The responsibility for the tax calculations rests with the employer and therefore there is less chance of mistakes being made.
E . There is less chance of interest and penalties being levied on the employee by the tax
authorities.
Answer: B,D,E
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