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Unformatted text preview: xactly constitutes equity in
taxation? How is the equity to be achieved in practice?
Is it through system of ability to pay or through the
system of benefit service? In this context, two
approaches to taxation are developed.
Taxation according to Benefit Received, 6
according to Ability to Pay.
according Benefit Principle:
Benefit The government services confer certain benefits to the
community, thus the cost of providing these benefits
should apportioned among the individuals and private
organizations on the basis of relative benefit they
enjoy. The benefit approach has two implications.
benefit is used as justification of taxes.
benefit is used as standard for apportioning tax
This principle assumes that there is basically an
exchange or contract relationship between taxpayers
and the government. This principle has interpreted in
the cost of service principle
the value of service principle
27 Benefit Principle:
Benefit According to the cost of service principle every
person should contribute in taxes, the actual cost of
the services of which he/she is beneficiary.
On the other hand, the...
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This note was uploaded on 02/11/2014 for the course MANA 2028 taught by Professor Sisterennis during the Winter '12 term at Marquette.
- Winter '12
- The Land