Basic Principles of Sound Tax System

Basic Principles of Sound Tax System:
- Fiscal Adequacy
- Equality or Theoretical Justice
- Administrative Feasibility
The source of government revenue should be efficient to demand the needs of public expenditure.

Fiscal Adequacy
Creating new taxes or new tax machinery or by merely changing the rates applicable to existing taxes

Fiscal Adequacy
The tax burden should be proportionate to the taxpayer's ability to pay.

Equality or Theoretical Justice
Ability-to-pay principle

Equality or Theoretical Justice
The tax laws should be capable of convenient, just and effective administration.

Administrative Feasibility
Under Administrative Feasibility, each tax should be in:
- Clear and plain to the Taxpayer
- Capable of uniform enforcement
- Convenient to time, place and manner of payment
- Not unduly burdensome upon or discouraging to business activity

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FelipeJung

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Card Set

Basic Principles of Sound Tax System

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Last Semester

Updated

2018-02-27T10:30:27Z