Note: FPSC Inspector Inland Revenue Paper Solved MCQs February 21, 2022 contain 80+ MCQs of English, FBR, Tax Administrative/Reform in Pakistan, Sales Tax Act, Federal Excise Act etc.

1. ‘Behind their instruments’ is ___ phrase.

A. An adjectival
B. An Adverbial
C. A Noun
D. None of these

Answer

Correct Answer: B. An Adverbial

 

2. ‘Angrily across the stage’ is ___ phrase.

A. An Adjectival
B. An Adverbial
C. A Noun
D. None of these

Answer

Correct Answer: B. An Adverbial

 

3. ‘The shocked members of the group across the mad’ contains ____ number of phrases.

A. 1
B. 2
C. 3
D. None of these

Answer

Correct Answer: C. 3 

 

4. An example of a relative subordinate clause is:

A. Because the cat was lazy
B. Which was normal
C. As the baby wanted breakfast
D. None of these

Answer

Correct Answer: B. Which was normal 

 

5. What’s the name of the man ____ gave us a lift.

A. He
B. What
C. Who
D. None of these

Answer

Correct Answer: C. Who

 

6. What was that notice ____.

A. At that you were looking
B. You were looking
C. You were looking at
D. None of these

Answer

Correct Answer: B. You were looking 

 

7. Susan is the woman ____ husband is in hospital.

A. Her
B. Hers the
C. Whose
D. None of these

Answer

Correct Answer: C. Whose 

 

8. York, ____ last year, is a nice old city.

A. I visited
B. That I visited
C. Which I visited
D. None of these

Answer

Correct Answer: C. Which I visited 

 

9. The accident was seen by some people ___ at a bus stop.

A. Waited
B. Waiting
C. Were waiting
D. None of these

Answer

Correct Answer: B. Waiting 

 

10. I just had to take the dog out ____ of the awful weather.

A. Although
B. Despite
C. Inspite
D. None of these

Answer

Correct Answer: C. Inspite 

 

11. Anna put the electric fire on ____ warm.

A. For getting
B. In order get
C. To get
D. None of these

Answer

Correct Answer: A. For getting 

 

12. If ____ my passport, I’ll be in trouble.

A. I lose
B. I’ll lose
C. I lost
D. None of these

Answer

Correct Answer: A. I lose

 

13. I haven’t got a ticket, if ___ one, I could get in.

A. I’d have
B. I had
C. I have
D. None of these

Answer

Correct Answer: B. I had 

 

14. If the bus to airport hadn’t been so late, we ___ the plane.

A. Caught
B. Had Caught
C. Would have caught
D. None of these

Answer

Correct Answer: C. Would have caught 

 

15. The chemist’s store was open, so luckily I ___ buy some aspirin.

A. Can
B. Can’t
C. Was able to
D. None of these

Answer

Correct Answer: C. Was able to 

 

16. We had a party last night. _____ spend all morning clearing up.

A. I must have
B. I’ve been to
C. I’ve had to
D. None of these

Answer

Correct Answer: C. I’ve had to

 

17. The house was ___ building.

A. A nice old stone
B. A nice stone old
C. A stone old nice
D. None of these

Answer

Correct Answer: A. A nice old stone

 

18. This detailed map is ___the atlas.

A. More useful as
B. More useful than
C. Use fuller as
D. None of these

Answer

Correct Answer: B. More useful than 

 

19. I’ve read this paragraph three times, and I ____ understand it.

A. Can’t still
B. Can’t yet
C. Still can’t
D. None of these

Answer

Correct Answer: C. Still can’t 

 

20. This place gets ____ crowded with tourists every summer.

A. Always more
B. Crowded and more
C. More and more
D. None of these

Answer

Correct Answer: C. More and more

 

21. The federal Consolidation fund constitutes:

A. Federal Government Revenues
B. Federal Government expenditures
C. Federal Government reserves
D. None of these

Answer

Correct Answer: A. Federal Government Revenues

 

22. The Divisible Pool consists of all major taxes of the Federal Government except:

A. Income tax and Federal Excise Duty
B. Custom duty and regulatory duty
C. Cess and levies
D. None of these

Answer

Correct Answer: C. Cess and levies 

 

23. The President constitutes the National Finance Commission (NFC) after:

A. Every Two Years
B. Every three Years
C. Every Five Years
D. None of these

Answer

Correct Answer: C. Every Five Years 

 

24. The role of the State Bank of Pakistan is to ensure all of the following except:

A. Reverse
B. Open market operations
C. Levying taxes
D. None of these

Answer

Correct Answer: C. Levying taxes 

 

25. Fiscal Policy addresses:

A. Taxation
B. Government Spending
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

26. ____ is the rate at which the price of goods and services increase.

A. Inflation
B. Consumerism
C. Capitalism
D. None of these

Answer

Correct Answer: A. Inflation 

 

27. Per capita income of Pakistan in 2020 was:

A. $1,194 (approx)
B. $1,025(approx)
C. %5995 (approx)
D. None of these

Answer

Correct Answer: A. $1,194 (approx) 

 

28. What is a Capital Account?

A. The sum total of a country’s saving
B. The sum total of total expenditures
C. The sum total of a country’s income
D. None of these

Answer

Correct Answer: C. The sum total of a country’s income 

 

29. In economic term’s ‘bull’ is:

A. The opposite of a bear
B. An investor who expects the price of a security to rise
C. Both A & B
D. None of these

Answer

Correct Answer: C. Both A & B 

 

30. The long-run pattern of economic growth and recession is called:

A. A business cycle
B. An annual budget
C. A project cycle
D. None of these

Answer

Correct Answer: A. A business cycle 

 

31. A budget deficit occurs:

A. When income is less than expenditures
B. When loans are less than grants
C. When earning is less than debt servicing
D. None of these

Answer

Correct Answer: C. When earning is less than debt servicing

 

32. When the value of currency appreciates it means that:

A. Cost of International trade has increased
B. Cost of international trade has decreased
C. Lesser goods can be purchased from the international market
D. None of these

Answer

Correct Answer: B. Cost of international trade has decreased

 

33. Which of the following is an example of Direct Taxation?

A. Levying taxes on salaries
B. Levying taxes on purchased
C. Levying taxes on supplies
D. None of these

Answer

Correct Answer: A. Levying taxes on salaries

 

34. “Assets-Liabilities”

A. Debt
B. Profit
C. Equity
D. None of these

Answer

Correct Answer: C. Equity 

 

Tax Administrative / Reform in Pakistan:

35. Domestic revenue mobilization is key is key to realizing sustainable development and providing the fiscal space fund:

A. Trade deficit
B. Current account deficit
C. Public Expenditures
D. None of these

Answer

Correct Answer: C. Public Expenditures

 

36. Pakistan’s tax revenues heavily rely on:

A. Federal taxes
B. Provincial taxes
C. Local bodies taxes
D. None of these

Answer

Correct Answer: A. Federal taxes 

 

37. FBR’s tax expenditures was at ___ of the GDP in FY 17-18.

A. 2%
B. 5%
C. 7%
D. None of these

Answer

Correct Answer: A. 2% 

 

38. According to Doing Business Report 2018, it takes about ___ hours to make 47 annual tax payments.

A. 211
B. 311
C. 411
D. None of these

Answer

Correct Answer: B. 311 

 

39. A tax system usually comprises:

A. Tax policy and audit
B. Tax reforms and automation
C. Tax policy and revenue administration
D. None of these

Answer

Correct Answer: C. Tax policy and revenue administration 

 

40. Progressive taxation means:

A. The more you earn, the higher is the rate of tax
B. The more you earn, the lesser is the rate of tax
C. The rate of tax remain constant
D. None of these

Answer

Correct Answer: A. The more you earn, the higher is the rate of tax 

 

41. Which one of these taxes is not levied on property?

A. Property tax
B. Withholding tax
C. Federal excise duty
D. None of these

Answer

Correct Answer: C. Federal excise duty 

 

42. As on 28-2-2021, income tax returns for tax year 2020 reached 2.8 million compared to:

A. 2.5 million last year
B. 2.5 million last year
C. 2.6 million last year
D. None of these

Answer

Correct Answer: C. 2.6 million last year 

 

43. IRIS-LMS is a Software of FBR:

A. For litigation management and reporting
B. For audit management and reporting
C. For enforcement management and reporting
D. None of these

Answer

Correct Answer: A. For litigation management and reporting 

 

44. For verification of ATL status under income Tax Ordinance 2001, SMS your CNIC on:

A. 9955
B. 9966
C. 9977
D. None of these

Answer

Correct Answer: B. 9966 

 

45. In compliance with directions of the ____, chairman holds regular e-kachehri at FBR HQ.

A. Prime Minister
B. President
C. Finance Minister
D. None of these

Answer

Correct Answer: A. Prime Minister

 

46. Under Pakistan Single Window (PSW) project, more than ___different departments would converge on one platform for facilitation of the business community.

A. 10
B. 30
C. 70
D. None of these

Answer

Correct Answer: C. 70 

 

47. Harmonization of sales tax between federation and federating units is making headway under the umbrella of:

A. National Tax Commission
B. National Tax Committee
C. National Tax Council
D. None of these

Answer

Correct Answer: C. National Tax Council 

 

48. The total tax collection of FBR during financial Year 17-18 was:

A. 3,644 billion
B. 3,744 billion
C. 3,844 billion
D. None of these

Answer

Correct Answer: C. 3,844 billion 

 

49. The total tax collection of FBR during financial Year 18-19 stood at:

A. 3,644 billion
B. 3,729 billion
C. 3,829 billion
D. None of these

Answer

Correct Answer: C. 3,829 billion 

 

Sales Tax Act 1990 as amended upto July, 2021:

50. “Schedule” means?

A. A Schedule of payment of sales tax:
B. A list of taxpayers
C. Schedule appended to Sales Tax Act, 1990
D. None of these

Answer

Correct Answer: C. Schedule appended to Sales Tax Act, 1990 

 

51. “Whistleblower” is a person who:

A. Is registered but not paying sales tax
B. Always deserves rewards
C. Is involved in tax-frauds
D. None of these

Answer

Correct Answer: D. None of these 


Detail About MCQs

A whistleblower is a person who voluntarily provides information to the general public, or someone in a position of authority, about dishonest or illegal business activities occurring at an organization. This organization could include a government department, a public company or a private organization.

 

52. “Computerized system” means:

A. All the computers of a taxpayers
B. Computer on which a sale tax return is filed
C. Any information technology system used by the Board
D. None of these

Answer

Correct Answer: C. Any information technology system used by the Board 

 

53. “Tier-I Retailer” means retailer:

A. Operating as a unit of chain of stores
B. Who is not a wholesaler
C. Whose shop measures one hundred square feet or more
D. None of these

Answer

Correct Answer: A. Operating as a unit of chain of stores

 

54. In case of change of rate of tax a taxable supply shall be charged to tax:

A. At such rate which is in Forcefor that month
B. At the rate of 71%
C. At the rate as decided by the commissioner I.R
D. None of these

Answer

Correct Answer: D. None of these

 

55. Where by a deliberate act, a tax has not been levied, the person liable to pay that tax shall be:

A. Served with a Notice under section 11 of the Act
B. Arrested and prosecuted
C. Warned in writing
D. None of these

Answer

Correct Answer: A. Served with a Notice under section 11 of the Act 

 

56. The Board may appoint Special Audit Panels comprising of:

A. Inland Revenue Officers and a Chartered Accountant or a Cost & Management Accountant
B. An Economist and an Auditor
C. Any person the Board may like to choose
D. None of these

Answer

Correct Answer: A. Inland Revenue Officers and a Chartered Accountant or a Cost & Management Accountant

 

57. Any person who fails to issue any invoice shall pay a penalty of:

A. 10% of the amount of tax involved
B. 5% of the amount of tax involved
C. Rs.5000 or 3% of the tax involved, whichever is higher
D. None of these

Answer

Correct Answer: C. Rs.5000 or 3% of the tax involved, whichever is higher

 

58. “Arrears” of sale tax can be recovered by:

A. Sale of property of the defaulter
B. Sealing of his assets
C. Stopping of his vehicles
D. None of these

Answer

Correct Answer: A. Sale of property of the defaulter 

 

59. For any amount due to be refunded to a tax payer, a claim should only be filed:

A. Electronically
B. Within one month
C. Within one year
D. None of these

Answer

Correct Answer: A. Electronically 

 

60. If the value of supply of agriculture produce exceeds certain amount the same are chargeable to sales tax:

A. At 10%
B. Only when sold by the retailers
C. When sold in the supermarkets
D. None of these

Answer

Correct Answer: D. None of these

 

61. “Supply” in sales tax includes:

A. Any Intellectual activity
B. Sale of ideas and innovations
C. Songs
D. None of these

Answer

Correct Answer: B. Sale of ideas and innovations 

 

62. “Cottage Industry” means an industry which:

A. Has no industrial gas connection
B. Is located in rural areas
C. Has labour force of less than 5 people
D. None of these

Answer

Correct Answer: A. Has no industrial gas connection

 

63. Sales tax on all the services is under the domain of:

A. Provinces of Pakistan
B. Federal Government
C. Both A & B
D. None of these

Answer

Correct Answer: D. None of these 

 

64. Assessment of tax and determination of tax liability:

A. Are the same things
B. Different from each other
C. Done by the taxpayer
D. None of these

Answer

Correct Answer: B. Different from each other 

 

Federal Excise Act 2005 as amended upto July 2021:

65. The word “Whole Sale” dealer is defined in:

A. Sub-section 26 of section 2 of the Act
B. Sub-section 25 of section 2 of the Act
C. Sub-section 19 of section 2 of the Act
D. None of these

Answer

Correct Answer: B. Sub-section 25 of section 2 of the Act

 

66. The Board is empowered to levy, feet and service charges for valuation:

A. With the approval of Federal Government
B. With the approval of Federal Minister Incharge
C. With the consultations of Chief Commissions
D. None of these

Answer

Correct Answer: B. With the approval of Federal Minister Incharge 

 

67. Who is required to provide and make arrangement for providing real time access information to the Board?

A. NADRA
B. Pakistan Railways
C. Police
D. None of these

Answer

Correct Answer: A. National Database and Registration Authority (NADRA)

 

68. Who has the power to share data or information’s including real-time data, videos?

A. Chief Commissioner
B. Commissioner
C. The Board
D. None of these

Answer

Correct Answer: C. The Board 

 

69. Which section of the Act provides mechanism for serving of notices and other documents?

A. Section 48
B. Section 47
C. Section 50
D. None of these

Answer

Correct Answer: B. Section 47 

 

70. Who does constitute audit panels special for conducting audit of a registered person?

A. Chief Commissioner
B. Commissioner
C. The Board
D. None of these

Answer

Correct Answer: C. The Board 

 

71. Who is required to obtain the brand license for each brand or stock keeping unit?

A. A registered person
B. The recipient of the goods
C. The manufactures of the specified goods
D. None of these

Answer

Correct Answer: C. The manufactures of the specified goods 

 

72. Subject to the provisions of sub-clause (1) of section 45(A): who is empowered to prescribe the record electronically or other means in respect of which monitoring, or packing, of production, sales, clearances, stocks, etc. are monitored and implemented?

A. Chief Commissioner
B. The Federal Government
C. The Board
D. None of these

Answer

Correct Answer: C. The Board 

 

73. Time limitation for allowing the refund of duty is:

A. Two years of its accrual
B. One year of its accrual
C. Three years of its accrual
D. None of these

Answer

Correct Answer: B. One year of its accrual 

 

74. Who is empowered to post an officer of Inland Revenue to the premises of the registered person?

A. The Federal Government
B. Chief Commissioner
C. The Board
D. None of these

Answer

Correct Answer: C. The Board 

 

75. Where recovery of tax has been stayed by the High Court by an order, the validity of the interim order shall be:

A. Till the decision of the case
B. For a period of six months unless the appeal is decided or such order is withdrawn
C. For a period of one year
D. None of these

Answer

Correct Answer: B. For a period of six months unless the appeal is decided or such order is withdrawn 

 

76. Time limitation for deciding the dispute referred by the Board to alternate Dispute Resolution Committee is:

A. 180 days of its appointment
B. 120 days of its appointment
C. 90 days of its appointment
D. None of these

Answer

Correct Answer: B. 120 days of its appointment

 

77. The word “Sales Tax Mode” is defined in:

A. Sub-section 22 of section 2 of the Act
B. Sub-section 21(A) of section 2 of the Act
C. Section 11 of the Act
D. None of these

Answer

Correct Answer: B. Sub-section 21(A) of section 2 of the Act 

 

78. “Non-tariff area” means:

A. Azad Jammu and Kashmir
B. Northern Areas
C. Azad Jammu and Kashmir, Northern Areas and such other territories or areas to which Federal Excise Act does not apply
D. None of these

Answer

Correct Answer: C. Azad Jammu and Kashmir, Northern Areas and such other territories or areas to which Federal Excise Act does not apply 

 

79. Where the appellant is a company the prescribe fee for filling an appeal before the Commissioner (appeal) against any assessment order is:

A. Rs.10,000/-
B. 1,000/-
C. 5,000/-
D. None of these

Answer

Correct Answer: C. 5,000/- 

 

80. The rate of amortization of pre-commencement expenditure is:

A. 25%
B. 15%
C. 20%
D. None of these

Answer

Correct Answer: D. None of these 

 

81. “Off-shore evader” includes:

A. A person who owns or is a beneficial owner of an off-shore asset
B. A person conniving actively with local evader of income tax
C. A person who under-declares the assets to the commissioner
D. None of these

Answer

Correct Answer: A. A person who owns or is a beneficial owner of an off-shore asset

 

82. In case of any “Employee Share Scheme”;

A. The value of a right to acquire shares shall not be chargeable to tax
B. There is nominal tax depending on the volume of employees share
C. Tax is charged from the date of issuance of such a share
D. None of these

Answer

Correct Answer: A. The value of a right to acquire shares shall not be chargeable to tax 

 

83. “Foreign source income” means:

A. Any income earned by a Pakistan citizen while working out of Pakistan
B. Any income of a foreigner
C. An income of last four years earned by any person in foreign exchange
D. None of these

Answer

Correct Answer: A. Any income earned by a Pakistan citizen while working out of Pakistan 

 

84. “Alternate Corporate Tax” means:

A. The tax at a rate of 17% of the income
B. The tax which is an alternate substitute to the normal tax on any business
C. The tax payable by all corporate entities
D. None of these

Answer

Correct Answer: D. None of these

 

Related Content

← Back to Main Page

Write a Comment

Your email address will not be published. Required fields are marked *