...Definition of Tax : The term Taxation or Tax is comes from Latin word "Taxatio" which means "Payable Quantam an Estimate". Tax is a compulsory levy upon a person. According to Taylor, taxes are the compulsory payments to the Govt. without expectation of direct benefit to the tax payer. So we can Say that, tax is an amount of money that compulsory pay to the Govt. It is the expense of the assesses. On the other hand it is the revenue of the Govt.In every country about 80% of total Govt. revenue comes from Tax. Characteristics of Tax : i) It is a compulsory levy under taxing act. ii) Tax payer can't get benefited direct or quid qua pro (proportionally get benefited) service for payment of tax iii) It is a price that pay to the Govt. for living in a civilized society iv) It must be a fixed rate v) It is the way for utility producing vi) It helps to develop the economy Principles / Canons of taxation : Adam Smith gave four principles of taxation which is called "Canons of Taxation" and those are following : i) Canon of Equality ii) Canon of Certainty iii) Canon of Convenience iv) Canon of Economy Some other writers prescribed some other principles/ Canons which are below : v) Canon of Productivity vi) Canon of Diversity vii) Canon of Simplicity viii) Canon of Flexibility ix) Canon of Social objectives x) Canon of Functional Efficiency Classification of Tax : Tax can be classified into different...
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...inspiration and suggestions. EXECUTIVE SUMMARY This dissertation report highlights on our practical experience in different types and categories ‘Tax System’ especially Tax System Of Bangladesh. During our short working period, we tried to gather information from News Paper, web sites. But the NBR does not provide information in the web site directly and even it does not publish tax structure implement in Bangladesh. So, we take much information about tax in our personal concept and view of Tax System of Bangladesh. To complete this report, we have gained practical knowledge about various type of Tax System. For example, Tax System Of Bangladesh, canon of taxation and implementation the canon of Bangladesh in Tax System Of Bangladesh. In this way, we are getting knowledge not only the tax system but also the implementation of canon on tax system of Bangladesh. As, tax is an important part of our country development. so, day by day, people are getting more conscious and informed about tax. Object of this study We can gain knowledge about the tax system of Bangladesh by studying this topic. As following aspects of tax we can learn from this study: 1. To get the idea about the collection of revenue, as context of Bangladesh. 2. How distribute the income of people in Bangladesh is allocated....
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...LETTER OF TRANSMITTAL 04th April 2007 Ms.Rehana Fowzia (Lecturer) Department of Business Administration Stamford University Bangladesh Subject: Submission of report on ‘Ascertain the position of cannons of taxation in tax system of Bangladesh’. Dear Ms.Rehana Fowzia madam We are pleased to submit this report on “‘Ascertain the position of cannons of taxation in tax system of Bangladesh’ for particular fulfillment of BBA Degree. This research program was taken by the help of ‘Three tax system of Bangladesh’, written by M.A. Akkas & ‘Income Tax’ written by Mahmud, Purohit, Bhattacharjee. Here is the report on the observational study of ‘Tax System Of Bangladesh’ you asked us to conduct last month. We honestly believe that this report will fulfill the requirements of the project report for BBA, which will help us a lot to gain sufficient knowledge about the ‘Tax System Of Bangladesh’. We appreciate having this assignment. If you should need any assistance in interpreting this report or in implementing our recommendations, atuddin_mezbah@yahoo.com, Contact No. 01718330355 Sincerely, 01. Mezbah Uddin Ahamed BBA02707126 02. Subbir Ahmed BBA02707121 03. Md. Mahmud Hossain BBA02707154 04. Subroto Biswas BBA02707125 05. Shamol Kanti Sarkar BBA02707112 06. Md. Mahfujul Alam BBA02707153 Program: BBA, Batch: 27 (J), Stamford University Bangladesh. please contact us ACKNOWLEDGEMENT Education involves not only reading books and doing...
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... for example some people would prefer to use a private medical clinic instead of a government one. The services in this area which are funded by tax payers need to mirror the needs of the majority of the population is order to be as fair as possible. The two main questions here are, what counts as necessary government spending and how much tax should people pay to contribute to this. Reduce the gap between the rich and the poor through redistribution: Progressive taxation can be used to reduce inequality in society. This helps certain individuals to never fall below a level of income that would deprive them of access to basic needs such as food, clothing, housing, education and health care. Reduce consumption of demerit goods Taxes can help to reduce the consumption of unhealthy products such as alcohol and tobacco, which will ultimately benefit society. In order to achieve the tax aims an affective and fair tax system must be in place. Adam Smith was the first person to introduce a list of 4 ‘canons’ which relate to the rate, amount, method of levy and collection of tax. These are all important issues that need to be dealt with before an...
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...The Patient Protection and Affordable Care Act was passed into law in 2010 and implemented in 2014. The goal of the bill was to create affordable health insurance policies so most individuals throughout the United States are covered by a health insurer. If an individual does not comply and purchase a mandated health insurance policy, he or she is subject to a penalty tax. This tax is the greater of a flat tax of up to $695.00 for each individual or 2.5% of the household income. This expansion of federal taxation is unprecedented and dangerous. The policy is fundamentally instructing the taxpayers how, where and when to spend their money. Once the Supreme Court upheld the ruling that the fines for non-compliance are actually taxes and not penalties, the law-makers have essentially been given permission to create other similar policies that require the taxpayers to spend money in a specific manner if the legislators believe it is in the best interest of the country. There are currently few issues that would require a similar policy. However, if a similar issue arises in the future, a precedent to implement a similar law mandating that citizens spend their money in a particular manner exists. The idea that the government determines how citizens spend money is not groundbreaking. Tariffs and subsidies have instructed citizens how to spend money in this country for decades. Both tariffs and subsidies indirectly form spending. The government decides which industries are...
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...Course Schedule Course Modules Review and Practice Exam Preparation Resources Module 10: Transfers of property among family members Overview The transfer of property between persons not dealing at arm’s length is one of the elements that must be considered in taxation to ensure that there are no unexpected tax consequences. The ITA contains rules to prevent tax benefits inconsistent with the spirit of the ITA when people are not dealing with each other at arm’s length. These rules apply mainly where the beneficiary of the transfer or loan of property does not give the transferor sufficient consideration or there is an unacceptable attempt to split income. To reduce taxes on death, the situation can be planned by carrying out an estate freeze, which involves estimating the taxes payable on death and limiting them to this estimate. This module describes some different freezing techniques that are available. Module 10 focuses on (1) your technical knowledge in taxation, and (2) your professionalism in respect to the integrative approach. The technical material mainly focuses on the tax treatment of gifts and non-arm’s length transactions, the attribution rules that limit the ability to split income within a family unit to take advantage of the progressive tax rates, and the usefulness of the estate freeze mechanism for reducing taxes on transferring wealth to the next generation. From an integrative perspective, professionalism includes relations with...
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...The contribution to economics of Adam Smith and John Maynard Keynes Adam Smith and John Maynard Keynes both have had a major effect on economic thought and many of their ideas are still influential today. This essay will look at the contribution that both men made to economic thought. According to Adam Smith Institute (2012), Adam Smith was born in 1723 in Scotland and is popularly known as the father of economics. His best known work is called “An Inquiry into the Nature and Causes of the Wealth of Nations” which is more commonly known as the Wealth of Nations. It was published in 1776 and in it; Adam Smith outlines his main economic ideas. Many ideas in the book were not ground breaking or original but Smith was the first to put them all together. In the Wealth of Nations (1776) Smith begins with an example of a factory that produces pins which he uses to explain the benefits of specialisation and division of labour. Smith explains how: “One man draws out the wire; another straights it; a third cuts it; a fourth points it; a fifth grinds it at the top for receiving the head” And so on until the pin is finished. Splitting the production of the pins into different operations, would result in more pins being created. Smith believed that 10 workers could produce 48,000 pins a day using specialisation and division of labour. If the workers were to produce pins individually then Smith believed that they would only produce 20 or less pins a day. It was Smiths...
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...Income Tax Law Income Tax Law and the National Budget 2010-2011 Md. Abdur Rashid, FCMA B.Com. (Hons.), M.Com., DAIBB, LLB, FCMA Income Tax Law explain changes in tax struc-ure of an economy over time under t the impact of economic development and of political and social factors. Tax structure is affected by economic development in three ways: (a) tax base undergoes a change as the develop- ental process m proceeds; (b) change in the tax base brings about changes in the revenue system: and (c) economic development leads to changes in the objectives of tax policy. Bangladesh Government collects taxes on account of custom duty, sales tax, value added taxes, excise duty, cess, fees, fines, penalties, income tax, advalorem duty, etc. It appears that to fulfill the objectives of tax policy the Government every year brings some changes in various tax laws to collect more taxes on the basis of above tax structure. be established for those items to repair or servicing and thus to reduce the unemployment problems in the country. National Budget Every year before preparing National Budget the National Board of Revenue holds series of meetings with various trade bodies, trade associations, groups of people, various academic and professional Institutions. It seems that this year the discussions have been held on various scopes and opportunities of collecting more taxes. The discussions, of course, have been held in various dimensional scopes. In such a meeting organized by Management...
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...SECTION ONE 1.1 Background to the study. The Nigeria tax system is basically structured as a tool for revenue generation. This is a legacy from the pre-independence government based on 1948 British tax laws and has been mainly static since enhancement. The history of direct taxation in Nigeria dates back to 1904 when the system of personal tax was introduced in Northern Nigeria by Lord Lugard. The Nature Revenue Ordinance was introduced in 1917 also in Northern Nigeria and extended to the East in 1928. The three regions, as Nigeria was previously constituted, had various legislations for direct and indirect personal taxes prior to independence in 1960. It was not until 1961 that a uniform Tax Law come into force for the whole federation known as the Income Tax Management Act (ITMA) of 1961. This was based on the recommendations of the Raiseman Fiscal Commission of 1958 which was embodied in Nigeria Constitution) Order in Council, 1960. The ITMA has been effectively repealed and replaced by the Personal Income Tax Act generally referred as Decree No. 104 of 1993. The Personal Income Tax Act No.104 (PITA) regulates Personal Income Taxation in Nigeria. Personal income tax is a tax that is imposed on individuals who are either in employment or running their own small businesses under a business name or partnership. Liability to personal income tax in Nigeria does not depend on the domicile or nationality of the tax payer. Profits arising from a trade, business, profession or vocation...
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...huge expenses such a war. Since then the British tax system has developed in a largely ad hoc and politically expedient method’’. Amendments have been made to the existing tax systems, usually when the government required more funds. Little if any planned or integrated thinking seems to have taken place. According to the Adam Smith Institute, Great Britain has the most complex tax system in the world, which is largely believed that is roughly five times as long as the German tax code (Geraint Jones, 2011) Currently, governments request to use taxation in some situations for purposes which is different than raising funds to cover up its expenditure. To begin with, the economic resources, which are accessible for the nation are limited, thus a raise in government spending usually leads to a decrease in private expenditure. In addition to this, one technique of transferring recourses from the private to the public sector is the use of taxation, but there are also further methods. One of these alternative methods is the degradation of the currency through the creation of additional money, but the main problem of this method is that it leads to inflation. Moreover, an additional alternative option is for the government to charge the goods and services it offers. However, it is not possible to charge individuals directly on the basis of their utilization of many government services (James and Nobes, 2011). According to Musgrave (1959), the economic function of government may be separated...
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...Kong Hong Kong and mainland Chinese shares slid as the fear of monetary tightening by Beijing resurfaced after economic data revealed consumer and property prices continued to rise on the mainland. Most Asian markets declined. Several markets opened higher following a hefty increase overnight on Wall Street, but their advance was tempered by concerns over the implementation of the European Union's bailout package. In the Philippines, the market surged after a relatively peaceful election. "It is becoming blatantly obvious that global economic growth is not going to be smooth sailing," said Southern Cross Equities director Charlie Aitken. "Sovereign-debt issues are the ultimate 'slow fix' problem, with the quicker fix of higher taxation and slower government spending being the archenemy of equity-market investors." In Shanghai, the Shanghai Composite slid 1.9% to finish at 2647.57, while Hong Kong's Hang Seng Index fell 1.4% to 20146.51. The decline came after economic data showed Chinese consumer and producer prices increased at a faster-than-expected pace in April, while mainland lenders made local currency loans worth 774 billion yuan ($113.5 billion) in April, up sharply from the 510.7 billion yuan they disbursed in the previous month. Data released separately also showed Chinese property prices rose 12.8% in April from a year earlier, despite recent tightening measures by authorities. The data served to raise fears of fresh tightening by Beijing, including...
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...ASSESSING THE CHALLENGES OF TAX REVENEUE MOBILISATION IN GHANA: A CASE OF SUNYANI MUNICIPALITY. By EGYIN, KODWO BOAKYE (PG 2043808) A Thesis submitted to the Institute Of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION JUNE, 2011 1 DECLARATION I hereby declare that this submission is my own work towards the CEMBA and that, to the best of my knowledge, it contains no material previously published by another person nor material which has been accepted for the award of any other degree of the University, except where due acknowledgement has been made in the text. Kodwo Boakye Egyin Student Name ................................... Signature .............................. Date Certified by: Mr. Jones Lewis Arthur Supervisor ................................... Signature .............................. Date Certified by: Professor Isaac Dontwi Dean ................................... Signature .............................. Date 2 DEDICATION I dedicate this work first to the Almighty God who has brought me this far, to my father, Kwamina Akwaa Egyin, who mentored me through my education, my loving wife, Yvonne, my sweet kids, Papa Akwaa, Araba and Kurankwesi who stayed by my side all along. 3 ACKNOWLEDGEMENT I am most grateful to the Almighty God for His protection throughout the course and seeing to a successful end. My special...
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...CHAPTER 1 INTRODUCTION TO TAXATION SOLUTIONS TO PROBLEM MATERIALS | | | | | Status: | Q/P | |Question/ |Learning | | | Present |in Prior | |Problem |Objective |Topic | | Edition |Edition | | | | | | | | | | | | 1 |LO 1, 2, 5 |Effect of state and local taxes on decision making | |Unchanged |1 | | 2 |LO 1 |Proportional and progressive rates contrasted | |Unchanged |2 | | 3 |LO 2 |Ad valorem tax on realty: conversion from tax-exempt to | |Unchanged |3 | | | |residential status | | | | | 4 |LO 1, 6 |Adam Smith and canon of convenience | |Unchanged |4 | | 5 |LO 2 |Use taxes ...
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...The Risks of Doing Business in China Despite recent measures to curb corruption, foreign investors doing business in China must remain vigilant. Tuesday, June 04, 2013 , By Jim Barratt and Jimmy Ko China's economy is the second-largest in the world and continues to grow at an astonishing rate. Just recently, in fact, the Asian Development Bank forecasted that China's economy will grow by 8.2% this year. However, while economic growth brings business opportunities to all investors, continued widespread corruption in China has affected its government's legitimacy in maintaining prosperity in the region and can bring a multitude of risks to financial services companies that are doing business there. With China's recent transition to new leadership complete, it has been interesting to observe the ruling party's heightened focus on tackling corruption. Under China's new president, Xi Jinping, it has conducted a visible anti-corruption drive and imposed austerity measures in an effort to curb the display of wealth by government officials and generate goodwill among the Chinese population. While critics say that the recent measures target only the most conspicuous displays of wealth by government officials, the anti-corruption drive has already netted dozens of officials. Moreover, some perceive that the recent election of Wang Qishan as the new head of China's anti-graft body, the Central Commission for Discipline Inspection (CCDI), signals that the financial sector could...
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...Justinian came to power on August 1st 527 and ruled till 565. Justinian’s rule was the last time the entire empire was unified. Justinian’s wars brought great successes for the imperial image, but also came at a high cost. The entire treasury that Anastasius had saved up had been exhausted, and heavy taxation was needed to pay for the cost of this extensive spending. The conquest only showed victory and progression only upon viewing the map at the end of his reign, which mostly was lost within a few years. All that remained in Byzantine hands till the 7th century is the strip of North Africa regained during the Vandal war. Justinian believed it was his charge to keep the empire together and regain the territories that had been lost and turn the Mediterranean into a “roman lake.” His duty as a Christian emperor was a duty to re-conquer. This progresses in several phases. In 532, there is the conclusion with an “eternal peace” with Persia, in order to keep territories around him free. Afterwards he turned his attention to the Germanic tribe of the Vandal kingdom in North Africa. The local aristocrats in North Africa called Justinian to assistance because one of the Vandal nobles had deposed and murdered the grandson of the Western emperor Valentinian. Originally he was hesitant, but a bishop told him that it was the will of God. He sent Belisarius out with his troops, along with Procopius. Within a year or two, Belisarius vanquished the Vandal King. Items were brought...
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