GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 19 May 2019, 05:34

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Fines for corporations

Author Message
Intern
Joined: 08 Jan 2019
Posts: 47

### Show Tags

05 Apr 2019, 02:21
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (00:34) wrong based on 1 sessions

### HideShow timer Statistics

State 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 (Off topic)
B. stiff fines are not the only way to collect past due corporate taxes (this one looks like a 180 +vague off topic diversion one - though this is the right answer provided)
C. corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are (its not about time - diversion)
D. past due taxes cannot be collected without a reduction in penalties (though this one state corporate or individual explicitly - even if I don't negate and take a straight approach - this one looks like the most direct assumption - considerable success with reduction - assumes my preceeding sentence?)
E. penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals(percentages are not explicitly stated - so another diversion)

The assumption explicit is reduced fines will help tax officials to collect past due taxes from corporation

There are 2 choices - B and D to eliminate from
Math Expert
Joined: 02 Sep 2009
Posts: 55148

### Show Tags

05 Apr 2019, 02:38
DebbieChats wrote:
State 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 (Off topic)
B. stiff fines are not the only way to collect past due corporate taxes (this one looks like a 180 +vague off topic diversion one - though this is the right answer provided)
C. corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are (its not about time - diversion)
D. past due taxes cannot be collected without a reduction in penalties (though this one state corporate or individual explicitly - even if I don't negate and take a straight approach - this one looks like the most direct assumption - considerable success with reduction - assumes my preceeding sentence?)
E. penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals(percentages are not explicitly stated - so another diversion)

The assumption explicit is reduced fines will help tax officials to collect past due taxes from corporation

There are 2 choices - B and D to eliminate from

Discussed here: https://gmatclub.com/forum/state-tax-of ... 17484.html
_________________
Re: Fines for corporations   [#permalink] 05 Apr 2019, 02:38
Display posts from previous: Sort by