Canons of Taxation free essay sample

A good tax system is one which is designed on the basis of an appropriate set of principles (rules). The tax system should strike a balance between the interest of the taxpayer and that of tax authorities. Adam Smith was the first economist to develop a list of Canons of Taxation. These canons are still regarded as characteristics or features of a good tax system. Adam Smith gave following four important canons of taxation. 1. Canon of Equity The principle aims at providing economic and social justice to the people. According to this principle, every person should pay to the government depending upon his ability to pay. The rich class people should pay higher taxes to the government, because without the protection of the government authorities (Police, Defence, etc. ) they could not have earned and enjoyed their income. Adam Smith argued that the taxes should be proportional to income, i. e. , citizens should pay the taxes in proportion to the revenue which they respectively enjoy under the protection of the state. We will write a custom essay sample on Canons of Taxation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2. Canon of Certainty According to Adam Smith, the tax which an individual has to pay should be certain, not arbitrary. The tax payer should know in advance how much tax he has to pay, at what time he has to pay the tax, and in what form the tax is to be paid to the government. In other words, every tax should satisfy the canon of certainty. At the same time a good tax system also ensures that the government is also certain about the amount that will be collected by way of tax. 3. Canon of Convenience The mode and timing of tax payment should be as far as possible, convenient to the tax payers. For example, land revenue is collected at time of harvest income tax is deducted at source. Convenient tax system will encourage people to pay tax and will increase tax revenue. 4. Canon of Economy This principle states that there should be economy in tax administration. The cost of tax collection should be lower than the amount of tax collected. It may not serve any purpose, if the taxes imposed are widespread but are difficult to administer. Therefore, it would make no sense to impose certain taxes, if it is difficult to administer. Additional Canons of Taxation v Activities and functions of the government have increased significantly since Adam Smiths time. Government are expected to maintain economic stability, full employment, reduce income inequality amp; promote growth and development. Tax system should be such that it meets the requirements of growing state activities. Accordingly, modern economists gave following additional canons of taxation. 5. Canon of Productivity It is also known as the canon of fiscal adequacy. According to this principle, the tax system should be able to yield enough revenue for the treasury and the government should have no need to resort to deficit financing. This is a good principle to follow in a developing economy. 6. Canon of Elasticity According to this canon, every tax imposed by the government should be elastic in nature. In other words, the income from tax should be capable of increasing or decreasing according to the requirement of the country. For example, if the government needs more income at time of crisis, the tax should be capable of yielding more income through increase in its rate. . Canon of Flexibility It should be easily possible for the authorities to revise the tax structure both with respect to its coverage and rates, to suit the changing requirements of the economy. With changing time and conditions the tax system needs to be changed without much difficulty. The tax system must be flexible and not rigid. 8. Canon of Simplicity The tax system shoul d not be complicated. That makes it difficult to understand and administer and results in problems of interpretation and disputes. In India, the efforts of the government in recent years have been to make the system simple. 9. Canon of Diversity This principle states that the government should collect taxes from different sources rather than concentrating on a single source of tax. It is not advisable for the government to depend upon a single source of tax, it may result in inequity to the certain section of the society; uncertainty for the government to raise funds. If the tax revenue comes from diversified source, then any reduction in tax revenue on account of any one cause is bound to be small.

How to Make Changes to Your MCAT Registration

How to Make Changes to Your MCAT Registration When you choose an MCAT test date, pay the registration fees, and complete your MCAT registration, you never figure that you may have to make a change. However, when it comes to your MCAT registration, you can certainly make changes if life doesnt work out according to your carefully made plans. Read on for ways to change your test center, change your test date or time, or cancel your MCAT registration. Change Your MCAT Test Center, Test Time or Test Date Shifting your test center or registering for a different test date or time isnt really all that difficult, providing there is space at the new center where youd like to test and availability on the dates youve provided. And there are benefits to changing multiple things at once if you need to change your test center and test date, for instance. If you change them separately, youll be charged a rescheduling fee twice. Change them together and youll only be charged once. There are a few caveats, though: You must make a change prior to the Silver Zone registration deadline for the exam for which youre currently registered.You cant change your test date before registration has opened for the new exam date as no special permissions or privileges are granted in registration order to previously registered testers.Rescheduling into an exam date that is within the Bronze Zone will cost you an additional $50. This fee is the difference between the initial Silver Zone registration fee ($275) and the initial Bronze Zone registration fee ($325). Cancel Your MCAT Registration Lets say youre called away on military duty. Or, heaven forbid, theres a death in your immediate family. Or, youve decided that you dont want to take the MCAT on your registered date and youre not sure when (or if!) youd like to register again. What can you do? If theres no emergency- youd just like to cancel for your own personal reasons- then here are the details: You must cancel before the end of the Gold Zone registration deadline in order to receive a partial refund- $135 for standard testers and $50 for FAP recipients.If you cancel after the Gold Zone registration deadline, you will not receive a refund at all! So youd better make sure youd really like to cancel.If you decide to register for a new test date in the same calendar year in which youve canceled, then youll have to pay the entire registration fee again, along with a rescheduling fee, which is nonrefundable. If youve experienced a crisis like being hospitalized or having a death in the family OR youre called away on military duty or to help medically in a catastrophic event, then you can receive a maximum of $135 no matter when the cancellation occurs. If youre a FAP recipient, youll receive a $50 cancellation reimbursement. Youll need to contact the MCAT Resource Center either by phone (202) 828-0690 or by email at mcataamc.org for instructions regarding canceling during a crisis. Please note that youll be required to provide either military papers explaining the dates of your deployment and length of service, a funeral program or death certificate, or medical documentation explaining the duration of your hospital stay. Make an MCAT Registration Change Here If youve decided you need to change your MCAT registration for any reason, you can log into the MCAT Scheduling and Registration System to make the necessary adjustments to your testing experience.