Unformatted text preview: Canons of Taxation
Canon of Certainty: The tax which each individual is
bound to pay ought to be certain and not arbitrary. It
implies that the tax-payer should determine the
following manners carefully.
the time of payment
amount to be paid
method of payment
the place of payment
This certainty creates confidence in taxpayer. On the
other hand, uncertainty makes the tax system arbitrary
and unfair and encourages the insolence and favors
the invasion. 18 Canons of Taxation
Canon of Economy: Every tax has a cost of
collection. This canon implies that minimum
possible expenditure should be made in the
collection of taxes.
All extra vengeance or unnecessary
expenditure in the collection should be avoided
at all costs.
The revenue from a tax should be very much
more than the cost of collection.
more 19 Canons of Taxation
Canon of Convenience: According to this
canon, taxes should be levied and collected in
such a manner that it provides the maximum of
convenience to the tax-payers.
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- Winter '12
- The Land, canon, public revenue