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What Is Taxation? by gu wei





Article Author Biography
What Is Taxation? by
Article Posted: 04/18/2011
Article Views: 55
Articles Written: 151
Word Count: 319
Article Votes: 0
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What Is Taxation?


 
Finance & Investment

A tax is a payment of money legally demanded by a government authority to meet public expenses.

Everyone knows that taxation is necessary in modern state: without it, it would not be possible to pay the soldiers and policemen who protect us; nor the workers in government offices who look after our health, our food, our water, and all the other things that we cannot do for ourselves, nor also the ministers and members of parliament who govern the country for us. By means of taxation we pay for things that we need just as much as we need somewhere to live and something to eat.

There are many other forms of Taxation. Tax Farming is to assign the responsibility of Tax revenue collection to groups or private citizens.

Tithe is one tenth of a person agricultural produce or earnings.

Scutage is the military service's pay in lieu. In practice this functions as a tax but rather than being a tax as such it is strictly speaking the communication of an obligation of non-tax.

Danegold was originally land tax from the medieval times. This tax was raised as a payoff to raiding Danes and also at a later date Danegold was used to fund military expenditures.

Tallage is a tax on feudal dependents.

Taxation is a monetary levy imposed on individuals and businesses, primarily to finance the operations of government, as well as raise funds for special programs or projects. Taxation may also be utilized for other major purposes aside from merely raising funds. It could be used to discourage certain activities such as smoking or alcohol consumption and may be a vehicle for transferring wealth from one group to another, like taxing the very rich to spend for welfare programs for the poor.

www.taylorandco.com.au provides a complete range of tax service and proven experience in business consulting, accountants nsw and taxation nsw services.

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