The document discusses the fundamentals of taxation. It covers the nature of taxation as a power exercised by legislative bodies to collect taxes and support government expenses and public services. It also discusses the purposes of taxation which is to raise revenue to support government expenditures, services, and promote citizen well-being. Additionally, it mentions canons of taxation which establish principles like fiscal adequacy, administrative feasibility, and theoretical justice.
3. fundamentals of taxation
fundamentals of taxation
fundamentals of taxation
fundamentals of taxation
Solution
Fundamentals of taxation
1.Nature of Taxation- Taxation is a state power exercised through the country's legislative body.
The principle of Taxation states that taxes are collected to support the government in its expenses
and services for public welfare.
2.Purpose- The purpose of taxation is to raise revenues from all possible sources to support
government expenditures and services and to promote the general well-being and protection of
its citizens.
3.Canons of Taxation- refer to the basic principles of a sound tax system which identify the
following: fiscal adequacy, administrative feasibility, and theoretical justice.
4.Administrative feasibility- Payment of taxes must be taxpayer- friendly.
5.Objective of Taxation- Individuals who earn a considerable amount of income as a worker or
as a businessman in partnerships or corportions, including those who inherited a property or
given a gift or donation of a considerable value; Tangible and Intangible properties, whether
personal properties that can be moved or relocated or real properties and Transactions,
consumptions interests, imports and exports.