Opinion polls highlighted the importance of taxation, pensions, public spending, and currency in influencing voter opinion. Direct tax Laws are difficult to understand as a result the lead to disputes. Scribd is the world's largest social reading and publishing site. PUBLIC FINANCE AND TAXATION Dr.Ramaswami Parameswaran November - 2005. Public finance is the study of the role of the government in the economy. Certain: The imposition of tax should yield the expected revenues in order to assist government forward planning. To ensure healthy public finances, particular attention should be given to: how taxation is designed and collected to make it more efficient; where expenditure is focused and prioritising productive investment in government; improving the countries' fiscal governance to allow growth-enhancing policies. This includes income tax, Payroll levy, and other withholding taxes. When made progressive direct taxes tend to be highly equitable. Simplicity of the tax system means the taxpayer should be able to understand the system and the tax base should be known clearly. PRINCIPLES OF PUBLIC FINANCE AND TAXATION ATD LEVEL III DCM LEVEL III STUDY TEXT www.someakenya.com Contact: 0707 737 890 Page 1 CONTENT 1. Income tax (personal, corporate) 2. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates. Taxes therefore should be treated as a payment for the goods and services provided by the government. The welfare aspects of public economics receive extensively renewed examination in this third edition. As a subject, public finance is a study of public sector economics. 2 PREFACE Today, tax has become a part and parcel of all economic activities of human beings. kasneb. In order then to avoid/minimize damage to the economy there are criteria/principles for evaluating tax systems. Tax and Public Finance Improved taxation is a key for developing countries to escape from aid or singular natural resource dependency. Public finances are the very foundation of the functioning of the state. In a layman’s language Public economics is the application of economics to the activities undertaken by the state. Property tax 3. For instance driving a defective motor vehicle may attract payment of a certain amount of money to the government as fine. To attain the much needed equally taxes are made to be proportional, progressive or regressive depending upon whether they take from high income earners the same fraction of income as tax than they take from low income people. Fines imposed as punishment or damages for contravening various Laws enacted by the government. Table of Contents1 PAPER NO. The amount of tax revenue (tax yield) from direct taxes will therefore depend on income of individuals and corporations. More related revision materials. The concept of from each according to his ability to pay or benefits received are really what the principle of equity is all about a tax system that takes away proportionately more income from higher income earners than from lower income earners is the termed as a progressive tax system. In a cash economy like ours where general level of education of taxpayers is low, it is difficult to determine taxable income of taxpayers. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list. In practice all the principle are put into use. INTRODUCTION TO PUBLIC FINANCE. Table of Contents. These are: Both principles are calling for equality, no one then will quarrel with a saying that ‘those who are essentially equal should be taxed equally’ (Horizontal Equity), and if equals are to be taxed equally then the reverse is also true, that unequal to be taxed unequally (Vertical Equity). Every man, willingly or unwillingly, pays an amount of money in the form of tax on the products he uses basically. Increase or decrease in tax rates usually does not affect the general price level. Value added tax (VAT) 5. Download PDF. Taxation is the part of public finance that deals with the means by which the government raises revenue from the public by imposing taxes which revenue is used by the government to provide goods and services to the public or its citizens (to carry out government functions). Full employment and stability do not come about automatically in a market economy but require public policy guidance. Incase of private goods the benefits of consumption are ‘internalized’ with a particular consumer whose consumption excludes military defence, Law and Order (The Police), Judiciary, Air clearing etc. mDarasa Phone App https://play.google.com/store/apps/details?id=com.rcm_mdarasa.www.mdarasa PUBLIC FINANCE AND TAXATION - 1 NBAA CPA REVIEW... CPA Joseph Chacha. Pensions 4. The ability to pay principle: This is concerned with the equitable distribution of taxes according to the stated taxable capacity or ability to pay of an individual or group. Apart from ensuring constant and uninterrupted flow of revenue to government revenue, taxation serves other fiscal policy objectives as well. Health care 2. Taxes on some commodities are certain while on others are fairly uncertain. Tax yield from indirect taxes will therefore depend on goods produced and services rendered in the economy. A combination of taxes on goods purchased largely by high income consumers with subsidies to other goods, which are chiefly used by low-income earners. Elasticity of Tax to changes in the tax base: A good tax system should be elastic to changes in the Tax base; the tax is elastic when the amount of revenue it yields increases as fast or faster than the growth of income or the economic or the economic activities. construction of road, purchase of rice etc. Direct taxes are unpopular as they directly affect the disposable income. The amount should not be the prerogative of the tax collector, as this will put the taxpayer to disadvantage and at the mercy of the collector and may make tax system arbitrary. CLICK HERE http://www.manifestedpublishers.com TO WATCH FULL VIDEO Be the first to review “CA61 Advanced Public Finance and Taxation – Kasneb” Cancel reply Your email address will not be published. On the other hand, this criterion advocates that the taxpayer ought to know precisely and exactly as regards the time of payment, the manner of payment and the amount to be paid. The government, therefore, derives its revenue from taxes. In order to understand the meaning and contents of public finance, one should be aware of the connotations of the words ’public’ and ‘finance’. In equity, a progressive rat structure and the minimum exemption policy should characterize the tax system. Required fields are marked * Register of Budget Users, payment services for budget users, exchange of e-invoices with budget users. They tend to be regressive especially when imposed on goods and services consumed by low income earners. ∎ bearing interest on which no taxes are i…, Taxation Policy Since 1991 Economic Reforms, Taxation without Representation is Tyranny, Taxation, Public Finance, and Public Debt, https://www.encyclopedia.com/humanities/encyclopedias-almanacs-transcripts-and-maps/taxation-and-public-finance, Pollock v. Farmers' Loan & Trust Company 1895. Chapter 2- Meaning and scope of public finance • Public finance is the study of income and the expenditure of the View Ch-2(Public Finance and Taxation).pptx from AIS 15 at University of Wisconsin. As a subject, taxation is a study of how the government imposes on and collects taxes from, the income and wealth of individuals and corporations to finance its social and regulatory activities. Alternatively, redistribution may be implemented by progressive income taxes used to finance public services especially those such as public housing scheme, hospitals and other health care schemes, education schemes etc which particularly benefit low income households. Collected from several sources, for example taxes, customs duties and other charges and non-tax revenue, public finances are paid into the state budget, municipal budgets, the Pension and Disability Insurance Fund of Slovenia and the Health Insurance Fund of Slovenia. empt • adj. Chapter 3: Ethiopian Public Finance. The most dependable and reliable definition of what is a tax was given by Hugh Dalton who defined a tax as “a compulsory contribution imposed by a public authority, irrespective of the exact amount of services rendered to the taxpayer in return, and not imposed as a penalty for any legal offence”. kasneb. INTODUCTION TO PUBLIC FINANCE AND TAXATION THEORY Public Finance is the term, which has traditionally been used or applied to the packages of … In taxation, equity refers to fairness in the distribution of the tax burden. A tax is compulsory and mandatory contribution to the government from its subjects. For instance, you may cross the Salender Bridge as much as you can but this does not reduce the possibility available to others to use the bridge. Increase in tax rates is likely to disturb the general price level. Equity: Equity entails that taxes should be levied in such a way that they promote fairness. CIFA part 1 section 2 . Earning abilities differ, so does factor endowment, this distribution of income may or may not be in line with what society considers fair and just. answer all questions. advanced public finance and taxation revision kit sample work . PUBLIC FINANCE AND TAXATION www.someakenya.com Contact: 0707 737 890 Page 7 Public finance is composed of the following constituents public: Expenditure Revenue Debt ( Financial ) administration Private finance is the study of the income, debt and expenditure of the individual or a private Economy: The administration of tax system should be least expensive in terms of both manpower and material. Import duties 6. CCP CICT cict past papers CIFA cifa past papers CPA cpa past papers Strategy Governance and Ethics. 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 and expenditure measures. 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