fundamentals of taxation fundamentals of taxation fundamenta

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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.