What problems are experienced in attempting to achieve justice in taxation? Support your answer with the four main theories which explain why it is difficult to exercise justice in taxation

Problems in achieving justice in taxation Recommendations: Distribution of taxation can be considered and treated as payment for public services and a payment equal to the cost of the services rendered. People can pay tax in proportion to benefits derived from the state activity. Sacrifice by the tax-payer should be taken into account. Problems experienced:

Share through

Reverse charge

Reverse charge This refers to VAT charged on imported services. The VAT in this case is paid by the person importing the service since the provider of the service is outside the scope of VAT. The importer of the service also claims the tax paid as input tax.

Share through

Purpose of Import declaration form

Import declaration form Import declaration form is a form supplied by the customs department for the importer to fill in order to ensure that: He declares/shows the goods he is importing, and that He indicates the correct value of the goods he is importing Show country of origin and destination Name/address of importer and exporter

Share through

With the introduction of the self-assessment system in 1992, the Commissioner of Income Tax does not raise assessments or send notices to taxpayers except in two circumstances. Explain these two circumstances

Three circumstances under which CIT can send notices or raise assessments: A person has not submitted a return of income and the CIT considers that the person has income chargeable to tax for that years CIT considers that a person has been assessed or has assessed himself at a less amount in relation to income

Share through

with reference to the provisions of the Income Tax Act, identify four methods which the Commissioner of Income Tax is empowered to use in order to collect overdue tax from a taxpayer.

Four methods the Commissioner of Income Tax is empowered to use in collecting overdue tax Commissioner of Income Tax can use for the recovery of the tax through a court of law. Commissioner of Income Tax can collect the tax through authorized agents under Section 96 Can collect under Section 102 by distress i.e. can

Share through