Ontario Barrister and Solicitor Practice Exam

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What does a surtax apply to?

  1. Personal income only

  2. Certain corporate and dividend incomes

  3. Sales tax only

  4. All incomes equally

The correct answer is: Certain corporate and dividend incomes

A surtax is a supplemental tax applied on top of the regular tax rate, specifically on certain types of income. Option A is incorrect because it only mentions one type of income, personal income, whereas a surtax can apply to different types of income. Option C is also incorrect because a surtax is not exclusively applied to sales tax. Option D is incorrect because all incomes are not necessarily subject to a surtax, only certain corporate and dividend incomes are. Therefore, option B is the most accurate answer.

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