Uk Tax Reform

3661 Words15 Pages
Abstract This paper examines the generally accepted desirable characteristic of a system of taxation. I describe in this paper that even where every one agrees that the tax system should be simple as dictated by the first maxim of Adam Smith, no country is yet to meet this standard. Questions on policy, complexity, equity, administrative efficiency, cost of compliance all increasing the cry for a tax change. Many Eastern Europeans have adopted the flax tax system and presently has an increase economic growth. However, are they fully operating the flax tax system? INTRODUCTION Taxation is a levy or a charge imposed by a government on its citizens to raise revenue that finances public spending. The government of every country of the…show more content…
The maxim fails to consider human behavior of maximizing opportunity available to them and will do anything to pay less or no tax should the opportunity arise. 2 The tax which each individual is bound to pay ought to be certain, and not arbitrary. The calculation of Income tax which is taking by employer paid net is ambiguous and difficult to understand. Corporate bodies and Self employed individual submits their assessment for Income tax computation through tax specialist because they can afford them. Corporate will always play on the loopholes in order to reduce the amount of Income Tax they pay. 3 Every tax ought to be levied at the time, or in the manner, in which it is most likely to be convenient for the contributor to pay it. This maxim assumes taxpayers are responsible citizens. Taxes on salaries and wages are collected at source for the government. The development of technologies gives opportunity to filing income taxes through e filing. It is also easy to calculate tax burden using the e consulting available on the HMRC website. The problem with the maxim is that tax it does not account for the circumstances of the taxpayers by using income. 4 Every tax ought to be so contrived as both to take out and to keep out of the pockets of the people as little as possible over and above what it brings into the public treasury of the
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