Unformatted text preview: and timing of tax payment should be
so far as possible convenient to tax payer.
This canon recommends that unnecessary
trouble to tax payer should be avoided,
otherwise various ill effect may result.
Besides these, there are other canons as well.
20 Canons of Taxation
Canon of Productivity: According to this principle the tax
system should be able to yield enough revenue for the
treasury and the government should not be forced for
Canon of Elasticity: Tax system should be possible from
the authority without delay, to revise the tax structure, both
with respect to its coverage and rates, to suit the changing
requirements of the economy and treasury.
Canon of Simplicity: Tax system should not be
complicated and difficult to administer and understand.
complicated 21 Theories of Taxation
1. Physiocratic Theory: According to this theory,
only land is capable of producing a net surplus.
Agriculture is only the productive sector and should be
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- Winter '12
- The Land, canon, public revenue