Taxation - 2 -fin Flashcards
Economic role of the state
regulatory role
The task of the state is to enforce rules and regulation under law and control
Economic role of the state
Allocation role
The task of the state is to provide and distribute goods and services
Economic role of the state
Redistribution role
The task of the state is to redistribute the budgetary in a fair and legal way of prosperity
Economic role of the state
Stabilizing role
The task of the state is to provide stable economic conditions
Public needs
The demand of the society on goods and services
Public tasks
All the activities to satisfy the public needs i.e: social care, street lighting, health service
Public finance
The sum of public revenues and public expenditures and all financial activites the state is doing for covering the public tasks
Public expenditures
All financial activities and money to meet the public tasks
The characteristics of tax
A type of government revenue
Used to finance public tasks
Tax collection is guaranteed by the State force
Definition of tax
The tax is a payment obligation based on legislation, which is implemented by the State or its empowerment, to a specified extent and time from natural person and legal entity
Main characteristics of tax
Mandatory
Based on the law
General financial service
Taxable entity (person)
Natural or legal person who is bound to pay taxes
Taxpayer
Natural or legal person (organization) who actually pays the tax
Objects of taxation
All the articles, rights, activites that the tax has to be paid after
Tax rate
The ratio at which a business or person is taxed
Task of the tax authorities
Collecting the taxes and duties
Recording the tax payers and the taxes
Determining the amount and rate of tax
The taxpayer’s rights and obligations
Notifying working or business activity
Declaring income and revenue in an official form
Doing business in a legal way
Principles of taxation
Principle of burden sharing
Citizens have to bear the tax burden of their solvency
Principles of taxation
Principle of reliability
The state presupposes the sade nad in time payment of the citizens
Principles of taxation
Principle of easy fulfilling
It assumes the best way and possibility for tax burden and even for taxpayer - it is good enforceable
Principles of taxation
Principle of reasonableness
Principle of reasonableness
Expectations of the tax system
Simple, consistent, stable
Categorization of taxes
Levy of tax
Central or local
Categorization of taxes
Burden sharing
Direct or Indirect
Categorization of taxes
Taxable entity
Natural person, legal entity, other
Categorization of taxes
Nature of taxation
Mandatory or voluntary
Categorization of taxes
Use of tax
General or targeted
Categorization of taxes
Temporality of taxes
One time i.e: v.a.t
Continuous i.e: personal income tax
Progressive tax
The government takes a larges percentage of a person’s income when they have a higher income
Can be banded or linear
Proportional tax
The government takes an amount of money from a person which is in direct proportion of their income
Regressive tax
The government takes a lower percentage of a person’s income when they have a higher income
Progressive tax
Linear tax rate
The taxable income is taxed with one key
Progressive tax
Banded tax rate
The taxable income can be taxed several tax rates
