Accounting Tax

taskation 2011/12 Week 2 Lecture notes Concepts of Taxation knowledgeableness The nation should have a appraise system which looks kindred someone designed it on purpose William Simon 1977 (J&N:131) ..governments riding habit revenue enhancementation to achieve goals new(prenominal) than simply raising revenue (J&N: 133) One of the difficulties of revenue re ope set up is to hear that the proposed reform is likely to support the relevant policy goals in practice and to do so without unintended and undesirable side-effects (J&N: 133) Problems in designing a revenue enhancement system: What to tax revenue Who to t ax hardest How eitherow people react When will changes implement effect Desirable characteristics of a tax system It is requisite that you are acquainted(predicate) with Adam Smiths canons of taxation (LO page43 onwards). These will form the basis of seminar 2. Equity: a tax should be seen to be fair in its affect on all individuals.

Tax should be levied according to peoples taxable capacity certainty: the tax endureer should know his tax liability and when and where to pay it lash-up: it should be easy for the taxpayer to pay what they owe Efficiency: the tax s ystem should not have an impact on the parc! elling of resources and it should be cheap to administer Others Simplicity Flexibility Aspects of truth Horizontal equity: taxpayers with equal taxable capacity tolerate the same tax file (employed/self-employed) Vertical equity: those with greater capacity bear a higher tax burden (high paid/ belittled paid) advanced taxes are seen as fairer Progressive: Where marginal rate exceeds average rate so that the remainder of income taken in tax rises as income rises Regressive: ...If you take to get a full essay, order it on our website: OrderCustomPaper.com

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