Question

Giving reason explain how should the following be treated in the estimation of national income:

Payment of corporate tax by a firm

How should the following be treated in estimating the national income of a country? You must give the reason for your answer.

Payment of corporate tax

Answer 1

Payment of a corporate tax is not included in the estimation of national income because it is a payment made by the firm out of their income.

Answer 2

Payment of corporate tax is included in the estimation of national income because it is a part of the corporate profit.