Which option describes the responsibility of a business regarding taxes?

The responsibility of a business regarding taxes primarily involves ensuring compliance with relevant tax laws and obligations. Businesses are required to deduct income tax from their employees' salaries before disbursing wages, which is part of the Pay As You Earn (PAYE) system. This system ensures that employees pay their income taxes incrementally through their paycheck rather than in a lump sum, simplifying the process for both the employee and the tax authorities. By fulfilling this role, businesses help to collect taxes owed to the government, thereby contributing to public revenue and services.

The other choices do not accurately depict the tax responsibilities of businesses. For instance, the claim that businesses are exempt from paying any taxes is inaccurate since they typically have various tax obligations such as corporate taxes, VAT, and payroll taxes. The assertion that businesses only pay sales tax disregards the multiple forms of taxes that they are liable for, including income tax and social security contributions. Finally, the idea that businesses determine their own tax rates contradicts tax legislation; rates are set by government authorities, and businesses are required to adhere to these regulations.