BASIC PRINCIPLES OF A SOUND TAX SYSTEM

Question 1

Source of revenue should be sufficient to meet the demands of public expenditures

Answer 1

Fiscal adequacy

Question 2

Tax burden should be proportionate to the taxpayer’s ability to pay (ability to
pay principle).

Answer 2

Equality or theoretical Justice

Question 3

. The laws should be capable of convenient, just and effective administration.

Answer 3

Administrative Feasibility

Question 4

Theses are Applications of administrative feasibility

Answer 4

• Collection of taxes at source ( withholding tax),
• Assigning of duly authorized banks to collect taxes,
• Quarterly filing and payment of income taxes