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# State tax officials, having had considerable success in

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21 Jul 2011, 16:10
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95% (hard)

Question Stats:

40% (01:01) correct 60% (01:22) wrong based on 226 sessions

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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
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
[Reveal] Spoiler: OA

Last edited by fluke on 30 Aug 2011, 13:52, edited 1 time in total.
Added the OA per bschool83's suggestion

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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21 Jul 2011, 18:34
bschool83 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

federal tax officials will not attempt to collect back taxes in the same manner.
>Let them do that. Both things can co-exist. Fed is not mentioned anywhere, so we don't know whether they can cause contention.

stiff fines are not the only way to collect past due corporate taxes
>Correct. Although, this option makes the question type "Must be true/Inference" more than assumption. "Stiff fines" are not the only ways or the officials would never have discussed the alternate plan to reduce penalties.

corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are
>No relation among delinquency, time period of tax evasion and the result of incorporating the stated plan is mentioned. Thus, this is out of scope.

past due taxes cannot be collected without a reduction in penalties
>"cannot"- is a strong word. Logically, state tax officials' plan is based on its success in other taxpayer group. stiff fines could be an alternative to this.

penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals
>Going deep into figures when the relation between reduction and success of plan is not stated anywhere.

Ans: "B"
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Re: CR - Assumption 700 level - Tax officials [#permalink]

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21 Jul 2011, 20:01
yes will go with B too.

A and E are out of scope,
C talks about comparison using length of time between corp and individuals, doesnt help.
D again if you negate it doesnt help.. sentence doesnt say that reducing penalties is the only method.. .

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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22 Jul 2011, 23:58
I marked D, what is the OA?

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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23 Jul 2011, 17:29
Evidence: State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties.

Conclusion: Tax officials plan to apply a similar approach to collect taxes from corporations.

Since, this plan is plan is more successful than the previously used tax collection method, one can assume that there are more than one tax collection methods. Answer choice B summarizes this point well.

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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26 Aug 2011, 07:35
I marked C but after reading I am convince that it should be B. what is OA
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Re: CR - Assumption 700 level - Tax officials [#permalink]

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29 Aug 2011, 10:45
Why not D?And why?Can anybody explain..

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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29 Aug 2011, 11:51
+1 for B
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Test Description_______Date____Total___Quant_____ Verbal
GMAT PREP1_____________________610
GMAX online test 1____29.07.2011__540_____43________19
MGMAT CAT 1_________03.09.2011__580____42________28
MGMAT CAT 2_________02.10.2011__690____48________36
GMAX online test 2_____16.10.2011__640____48________32
MGMAT CAT 3_________23.11.2011__670____47________34
Veritas free CAT______ 31.10.2011___630___ 46________33
MGMAT CAT 4_________06.11.2011__690____48________36
MGMAT CAT 5_________13.11.2011__660____46________34
MGMAT CAT 6_________19.11.2011__680____51________33
GMAT PREP2__________23.11.2011__680
GMAT Exam___________24.11.2011__690____50________34

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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30 Aug 2011, 13:36
federal tax officials will not attempt to collect back taxes in the same manner OUT OF SCOPE
stiff fines are not the only way to collect past due corporate taxes
corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are OUT OF SCOPE
past due taxes cannot be collected without a reduction in penalties DOES NOT TALK ABOUT CORPORATIONS
penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals OUT OF SCOPE

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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04 Oct 2011, 00:50
This is not a good question, because it suggests to assume that stiff fines are the only form of penalties, whereas there is no indication in the premise to this point. Why we must not, then, assume that there can be some forms of penalty other than fines such as luquidation etc. Hence, B seems to be wrong.

Even if D is also not a convincing choice it is the only one which is better than others.

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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04 Oct 2011, 08:31
+1 D
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Re: CR - Assumption 700 level - Tax officials [#permalink]

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04 Oct 2011, 18:56
I would go with D. I feel B would make sense if it read "stiff fines are the only way to collect past due corporate taxes"

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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05 Oct 2011, 21:02
Argument is simple and answer choices are simple too. We do not spend a lot of time to understand argument and answer choices as the case with long and complex argument.

However, this is hard. Unlike SUPPORTER ASSUMPTION, which can be realize when we read answer choices, DEFENDER ASSUMPTION is hard to realize and so requires us to negate each answer choice to find the defender assumption. This process of negation takes more time than the process of finding supporter assumption.

Mode to tack : for assumption question, when we finish reading 5 answer choices and see nothing, it is defender assumption question and we have to think of negation of each answer choice.

logic of CR is simple to understand the explanation. But the problem is that we find out the method of attacking for each kind of question so that we do not miss the hard questions next time. I wish you to share your ideas. I am highly interested in discussion of gmatprep questions because gmatprep is official source of hard questions.

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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13 Oct 2011, 22:02
members, pls, discuss

it is clear that B is correct. But I want to discuss why many persons choose D. in fact, D makes me uncomfortable.

I see many questions in gmatprep, which contain answer choice like D and which makes me uncomfortable.

The test maker fully understand that he/she make us hard with D and I want to understand the way test maker make D. I want to know clue/method to realize the wrongness of D so that next time we can be easy with D.

D makes us think that negation of D weakens the argument but the negation dose not. Is this what the test maker want?

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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14 Oct 2011, 09:22
I put D. I see that B is correct.

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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15 Oct 2011, 01:48
+1 B
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Re: CR - Assumption 700 level - Tax officials [#permalink]

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17 Oct 2011, 20:02
thangvietnam wrote:
members, pls, discuss

it is clear that B is correct. But I want to discuss why many persons choose D. in fact, D makes me uncomfortable.

I see many questions in gmatprep, which contain answer choice like D and which makes me uncomfortable.

The test maker fully understand that he/she make us hard with D and I want to understand the way test maker make D. I want to know clue/method to realize the wrongness of D so that next time we can be easy with D.

D makes us think that negation of D weakens the argument but the negation dose not. Is this what the test maker want?

We are looking for answer choice which eliminates possible reason which could attack the argument...and the author assumes that such a possible reason does not exit.

We may use the Negation technique to examine options B and D

Option D negated - past due taxes can be collected without a reduction in penalties...this does not weaken the argument

Option B negated - stiff fines are the only way to collect past due corporate taxes....this attacks the arguments... reducing penalties will be an incentive to persuade delinquent individuals to pay taxes

Hope this helps!

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Re: CR - Assumption 700 level - Tax officials [#permalink]

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07 Nov 2011, 03:02
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concept of defender assumption and supporter assumption is developed in GMAT CRITICAL REASOING BIBLE. Not all of the book is good.

I want to share with you more.

For assumption, strengthening and weakening questions, the wrong answer choices which RESTATES EVIDENCE or CONTRADICTS EVIDENCE are very tricky. practice to realize these wrong answer choices is very helpfull because many trap answer choices hinge on the 2 concept. For more understanding, do searching RESTATE EVIDENCE/ CONTRADICT EVIDENCE in this forum in which I post some comment.

looking answer choices under the light of RESTATE /CONTRADICT EVIDENCE help us understand argument better.

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08 Nov 2011, 04:03
D seems better than B

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14 Dec 2011, 22:21
B is better than the rest...

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Re: State tax officials, having had considerable success in   [#permalink] 14 Dec 2011, 22:21

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