Law of Taxation

Question 1

Definition of Tax

Answer 1

Oxford Advanced Learner’s Dictionary (2006) defined tax as ‘money that you have to pay to the government so that it can pay for public services.’ It further concluded that ‘people pay tax according to their income and businesses pay tax according to their profits. Tax is also often paid on goods and services.’

Investwords.com refers to tax as ‘a fee charged by a
government on a product, income or activity.’

Mathews v Chicory Marketing Board (1938) 60 CLR 263
a compulsory exaction of money by a public authority for public purpose or raising money for the purpose of government by means of contributions from individual persons.’

Aiyar’s Concise Law Dictionary (2009) as the most apt and encompassing definition. Tax was defined as ‘a compulsory exaction of money by a public authority for public purposes enforceable by law and is not payment for services rendered.’

Question 2

Principles of Tax

Answer 2

*Fairness
*Equity
*Efficiency (Administrative)
*Convenience/Ability to pay
*Simplicity
*Certainty
*Flexibility and Stability
*Neutrality

Question 3

Duty to impose tax

Answer 3

S. 24(f) CFRN
S. 41(1) PITA
S. 53 (3) CITA
Article 28(b) ACHPR