Question: Which one is it? I am thinking it is the second option but i need explanation as to why The purpose of a withholding tax

Which one is it? I am thinking it is the second option but i need explanation as to why

The purpose of a withholding tax

Multiple Choice

  • is to assure the local tax authority that it will receive the tax due on the active income earned within its tax jurisdiction.
  • is to assure the local tax authority that it will receive the tax due on the passive income earned within its tax jurisdiction.
  • is to assure the local tax authority that it will receive the tax due on all income earned within its tax jurisdiction.
  • none of the options

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