Objective of taxation pdf

Let us make an indepth study of the objectives and canons of taxation by the government of india. Direct tax mcq multiple choice question and answer direct tax mcq with detailed explanation for interview, entrance and competitive exams. Objective values are those that lie outside of the individual and are not dependent upon herhis perception or belief. A neutral tax is one that would not influence any aspect of the investment decision such as the location of the investment or the nationality or the investor. The government requires carrying out various development and welfare activities in the country. In order to provide for these program and services, the government needs revenues. Introduction to taxation our purposes, the sections on tax structure, types of tax, tax administration, and understating the tax law will be relatively. Pdf this paper is a nontechnical discussion by an economist and lawyer, each with long international experience in taxation, of the constraints and. Considering the practical difficulties associated with the subjective approach, some american economists developed an alternative approach, based on objective factors consideration in the distribution of tax burden. Part of the european law commons, taxationfederal commons, taxation transnational.

Impact of tax administration on government revenue in a. Tax planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the statute. Purposive tax planning refers to the tax planning method which misleads the law. The three goals of taxation university of michigan law school. The balance between agriculture and other sectors 1073 4. Read it with the goal of gaining a broad understanding of tax purposes and principles. Additional surcharge education cess of 3% per cent is payable on a income tax. Introduction to taxation government plays an important role in most modern economies. Most discussions of tax policy objectives in any country begin by stating that the fundamental objective of taxation is to secure the resources needed for public. The definition, measurement, and evaluation of tax. This article is concerned with taxation in general, its principles, its objectives, and its. The major objective of taxation is to raise revenue. Discuss the objectives, importance and types of tax. Taxationincentives a 0% rate of taxation and a 100% rate of taxation both result in zero tax revenue.

Public finance is the term, which has traditionally been used or applied to the packages of those policy problems, which involve the use of tax. Governments use taxation to encourage or discourage certain economic decisions. It then provides an overview of the principles underlying corporate income tax, focusing primarily on the taxation of crossborder income both. The limited objective of these treaties was to ensure that diplomats of one. It is built on the significant commonalities identified in the pow, takes account of the views expressed during the march public consultation in paris, and seeks. Objectives of taxation australia taxation assignment help. Scope and objectives of the tax working group victoria university. Objectives of taxation reasons allow extensive unemployment to go unnoticed.

Discuss the objectives, importance and types of tax planning. Objectives of tax planning tax planning, in fact, is an honest and rightful approach to the attainment of maximum benefits of the income tax law within the framework. Objectives of international taxation mba knowledge base. Under this type, there is no expressed provision of the statute. The main objectives of international taxation are the neutrality and equity. Some philosophers theorize that all values are relative to individuals or groups. Income tax gk multiple choice questionsmcqs and answers. December 2018 pdf december 2017 pdf december 2016 pdf december 2015 pdf. Income tax objective type questions accounts india. Surcharge of 10 per cent is payable by an individual where the total income exceeds. Plato argued powerfully in favor of the objectivity of values such as truth, good, and beauty. Although they need to be reinterpreted from time to time, these principles retain remarkable relevance.

After reading these tricky taxation questions, you can easily attempt the objective type and multiple choice type questions on. Most governmental activities must be financed by taxation. Solved examples with detailed answer description, explanation are given and it would be easy to understand. Download pdf free download in pdf income tax general knowledge multiple choice questionsmcqs and answers. These 55 solved taxation questions will help you prepare for personal interviews and online selection tests during campus placement for freshers and job interviews for professionals. Taxation meaning in the cambridge english dictionary. Multiple choice questions if an assessee earns rent from a subtenant in respect to tenanted property let out as a residence, the said rent is. In the united states, the role of the government extends from providing for national defense to providing social security and medicare to the elderly.

Consistent with that objective and to help expedite progress towards reaching a consensus solution to pillar one issues, the secretariat prepared a proposed nified u approach. An accountant can influence a company even by not being an employee. A second objective of taxation is that of regulation or control. The objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic product gdp.

Free download in pdf income tax general knowledge multiple choice questionsmcqs and answers. Having stated some of the functions of government to the citizens using taxation as a tool, the objective of taxation can therefore be summed up as in nightingale 2002 and lyme and oats 2010. Otherwise the incentive to work and save, and the incentive for faithful voluntary compliance, will be. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. Although the history is interesting, for 1 unit 01. At the same time, declining total income must bring with it declining tax and other nonborrowed receipts. In the wealth of nations book v, chapter 2 he set down four general canons. However, revenue objective of taxation is subject to certain criticism. The impact of taxation as an aid to economic development includes abstract and chapter one, complete project material available the impact of taxation as an aid to economic development in edo statea case study of oredo local government area, edo state, nigeriaproposalthe research work will discuss in detail the impact of taxation as an aid to. The taxation authorities, therefore, need to know the income of a company to calculate the amount of tax that the company would have to pay. The work of the victoria university of wellington tax working group aims to build on the february tax.

Request pdf the three goals of taxation the current debate on whether the us tax base should be income or consumption has been waged in terms of the traditional criteria for evaluating. Seligman used the term faculty to indicate ability in the objective sense. Direct tax objective type questions pdf download 2020 page 3. Tax planning, wherein the planning is made as per expressed provision of the taxation laws is termed as permissive tax planning. So, raising more and more revenues has been an important objective of tax. May 06, 2011 objective questions in income tax multiple choice questions finance act 2008 1. Based on worldwide experience, the maximum marginal tax rate should not be much higher than 35%. Introduction to taxation our purposes, the sections on tax structure, types of tax, tax. But certain other objectives are also important in the design of a tax system. Taxation 2 iia issues paper series tax provisions do not typically form a principal part of iias, partly owing to the existence of the taxspecific dtts.

Ageing population pressure to support for education and social welfare pressure for infrastructure. Public finance is the term, which has traditionally been used or applied to the packages of. Pdf functions and objectives of taxation matsiko muhwezi. The definition of taxes a tax is a compulsory, unrequited payment to. This can be done by taxing the rich at higher rate than the poor or by introducing a system of progressive taxation. One reason for the limited role of taxation provisions in iias is that the inclusion of taxation matters can sometimes unduly complicate and draw. Dear readers, welcome to taxation interview questions with answers and explanation.

Redistribution of wealth and income to promote the welfare and equality of the citizens. Hence, the objective of tax planning cannot be regarded as offending any concept of the law and subjected to reprehension or reducing the inflow of revenue to the. Direct tax objective type questions pdf download 2020. Put simply, it is an arrangement of an assessees business or financial. Finally, another extrarevenue or nonrevenue objective of taxation is the reduction of inequalities in income and wealth.

He can act as a man who verifies and certifies the authenticity. Tax accounts want to file thorough tax returns on a timely basis in order to avoid fines or interest charges on missed tax payments. The main objective of a tax accountant is to file an accurate and complete tax return for her client. Chapter 2 fundamental principles of taxation oecd ilibrary. Avoidance ofjuridical double taxation typically, adta isan agreement between the governments oftwo countries a bilateral treaty orbetween more than two countries a multilateral treaty with the objective of. The programme is offered over a oneyear period, starting in february at the university of the witwatersrand, braamfontein campus west, under the guidance of highly qualified specialist lecturers. Secretariat proposal for a unified approach under pillar one.

May 12, 2015 intoduction to public finance and taxation theory. Taxation, imposition of compulsory levies on individuals or entities by governments. The fundamental objective of taxation is to finance government expenditure. Tremendous amount needed by modern government authorities for nationwide defense, development of facilities and social upliftment techniques make regular and methodical source mobilization necessary. Taxation join wits plus and study towards a certificate course in taxation. These diplomatic treaties were extended to cover income taxation once it became significant in the early part of the. The information generated by accounting helps them in such computations and also to detect any attempts of tax evasion. The primary purpose of taxation is to raise revenue to meet huge public expenditure. This requires a thorough knowledge of irs tax law, which changes every year. Many people have thought about what the main objectives of tax policy should be, and while these desirable objectives are easily ascertained, few nations follow most of them because of the influence of special interests, especially the wealthy, in determining public policy. The 18thcentury economist and philosopher adam smith attempted to systematize the rules that should govern a rational system of taxation. A means by which governments finance their expenditure by imposing charges on citizens and corporate entities.

These income tax gk quiz or general awareness quiz objective questions answers are very helpful for competitive exams bba, mba, pgdbm etc. Objective questions in income tax multiple choice questions finance act 2008 1. This article is concerned with taxation in general, its principles, its objectives, and its effects specifically, the article discusses the nature and. At present this is only one of several aims, because the tax system is now also used for broader socio economic purposes. Objective of the course theory and practice in taxation objectivity and ideology economics of taxation is mathematics. For example, reduction in taxable personal or household income by the amount paid as interest on home mortgage loans results in greater. Applied direct taxation objective questions and answers. It is commonly argued that, taxation may be used as an instrument for obtaining certain social objectives like redistribution of wealth and reduction of inequality. Download objective type questions of direct tax pdf visit our pdf store.