Accounting Tax

taskation 2011/12 Week 2 Lecture notes Concepts of Taxation opening The nation should have a appraise system which looks standardized someone designed it on purpose William Simon 1977 (J&N:131) ..governments workout 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 plug 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 appraise system: What to value Who to tax hardest How dep art people react When will changes devour effect Desirable characteristics of a tax system It is each important(p) 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 consequence: the tax endureer should know his tax liability and when and where to pay it widget: it should be easy for the taxpayer to pay what they owe Efficiency: the tax system should not have an impact on the assignation of resources and it should be ! cheap to administer Others Simplicity Flexibility Aspects of legality Horizontal equity: taxpayers with equal taxable capacity endure the same tax shipment (employed/self-employed) Vertical equity: those with greater capacity bear a higher tax burden (high paid/ belittled paid) forward-moving taxes are seen as fairer Progressive: Where marginal rate exceeds average rate so that the proportion of income taken in tax rises as income rises Regressive: ...If you take to get a full essay, order it on our website: BestEssayCheap.com

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