ELECTRN 6 Lecture Notes - Lecture 14: Personal Allowance, Tax, Sales Tax
Document Summary
What is a tax: compulsory obligations to pay, unrequited taxpayer receives nothing in return but governments use the funds raised to provide goods or services, paid to the government, cash in kind. Principle of legality: any tax must have a firm legal basis, approved by parliament. Constitutional constraints: it may contain specific procedures for adoption of taxes. It may impose restrictions on what kinds of taxes may be imposed or how much tax may be collected. They are compulsory but requited payments the taxpayer receives something in return for the payment. Fees and charges are usually used interchangeably but they can be divided between service fees due for an activity of the administration and user charges due for the potential use of public services. Direct taxes : personal income tax, wage tax (levied from employee, payroll tax (often levied from employer, corporate income tax (income from business and capital from legal persons, dividend tax or other source tax (interest/royalties)
