The Canons Of Good Taxation Essay - 1464 Words

Canons of good taxation refer to Adam Smith’s study illustrated in the book ‘Wealth of Nations’. The canons consist of equity, certainty, convenience and efficiency are used to determine the effectiveness of a tax system. This report will critically analyse these canons in relation to the recent bright-line test announced by the government. The bright-line test seeks to improve upon the intention test under ss CB 6-CB 15 by proposing income tax on gains received from disposal of residential property within 2 years of purchase. This new rule is used to address property speculation, as it is seen as the primary cause of the increasingly high residential property prices in New Zealand in particular Auckland. The average value of residential homes in Auckland in February 2015 was $786,106. Now in February 2016 the average value is $925,656 that is a staggering 17.8% increase in just one year. Generally speaking, the bright-line test is in favour of Adam Smith’s canon of equity. This is because it further taxes New Zealanders, who derive the ‘same’ income through wages and salaries as someone who receives income through the sale of property (Provided it is within 2 years of purchase). Beforehand, only people who fail the intention test under ss CB 6-CB 15 would be exempt from tax. The bright-line test acts as a supplement to the intention test, resulting in a greater number of people with similar incomes being taxed and thus increasing what is called horizontal equity.Show MoreRelatedCorporate Taxation Essay1986 Words   |  8 Pagesare collected via taxation. These are the most basic operations of government which requires tax funds. A few other complicated reasons for the collection of tax can be to fund wars or encourage a rapid economic development – which all requires funds. Tax policy can also be very useful and effective to attain price stability, control business boom and depressions and to maintain full employment. Tax is also used to diminish inequalities in society via income and wealth taxation, where those withRead MoreEquity: Tax and Adam Smith Essay2030 Words   |  9 PagesIntroduction This piece of eassy will contain two sections. In this part of the eassy I will discuss the meaning and importance of equity in taxation since Adam Smith included it as one of the Canons of taxation. Equity is defined as â€Å"redistributive taxation induces allocative distortions by driving a wedge between the price the consumer pays and the price the producer receives† (Begg et al. 2005, p.219). There are two types of equity to be considered: the horizontal equity, and vertical equityRead MoreTaxation And Its Effect On Economic Activities1687 Words   |  7 PagesTaxation  plays  an  essential  role  in  our  daily  life.  The tax is compulsory levy from the government used to provide service and benefits to society which nothing will be return received directly.This  essay  attempts  to  explain  how  to  create  a  good  tax  system  or  the  characteristics  of  a  good  tax  system,  and  the  challenges  the  policy  maker  might  face.  The  study  of  the  tax  policy  is  concerned  with  the  design  of  a  tax  system  that  is  capable  of  financin g  the  necessary  level  of  public  spending  in  the  most  efficient  and  equitable  way  possibleRead MoreTax System in Bangladesh2828 Words   |  12 PagesSystem. For example, Tax System of Bangladesh, tax structure in Bangladesh , canon of taxation and implementation of the canon of tax in Tax System of Bangladesh. In this way, we have collected information regarding overall tax system in Bangladesh .   As, tax is an important part of our country development. So, day by day, people are getting more conscious and informed about tax.    1.1. Origin of the report: The taxation system in Bangladesh is based on the ability to pay theory and hence utilizesRead MoreClassical and Neoclassical Economists: Adam Smith and John Maynard Keynes1289 Words   |  6 Pagesleaders†. Adam Smith, is known as the Father of economics, Capitalism and advocate of free market also known as laissez-faire. His theory of invisible hand of free enterprise and his 1776 Wealth of Nations is what he is most admired for, also the canons of taxation, labour theory of value, the division of labour, lastly he distinguished between production and non-production labour and value in use and value in exchange. Whereas John Maynard Keynes, is known as the Father of the Mixed Economy, and is knownRead MoreObamacare Economics Research Paper1441 Words   |  6 Pagesunsatisfying care since doctors are under-compensated. Merely, Medicaid expands Medicare instead of reforming it. Therefore many patients are bound to miss treatment. Looking at America’s history, laws are only as strong as its enforcement. Though PPACA has good intentions to stop insurance companies’ injustices, it may fall victim if it remains close (friends) and regulated with people allied to the insurance company. However, the bill is set to aid micro-businesses as well as other sectors to obtain insuranceRead MoreDeclaration of the Rights of Men and of Citizens1751 Words   |  8 Pages However, the uproar provoked by Julian Assange and Edward Snowden prove that the West cannot lay claims to an unmarred reputation of moral conduct. Individual intrinsic equality is never defined with autonomy, since it is always bordered by the canons of the law. The Declaration seems to state that the power of the law transcends the rights of man, as it may decide what is within and excluded from such rights. It is given the power to distinguish and determine. LAW The Declaration defines theRead MoreCanon Swot Analysis2046 Words   |  9 PagesCANON STRENGTHs: * Strong promotion: Canon India photo Marathon Contest 2011. Prizes- Grand prize: Photo clinic tour to Tasmania, Australia for top 2 winners 2nd prize winner: Wins the EOS 600D ( 18-55mm lens kit ) 3rd prize winner: Wins the EOS 550D ( 18-55mm lens kit) 4th prize winner: Wins the EOS 1100D (18-55mm IS lens kit) Held at three places simultaneously- Read MoreEssay on The Life of Martin Luther, the German Reformer1040 Words   |  5 PagesUniversity of Erfurt where he had received his B.A and M.A degrees by 1505 A.D. He intended to pursue a professional career in law. He was nearly struck by a lighting bolt in 1501 A.D and declared â€Å"St Anne, save me! And I will become a monk†. He made good on that vow and entered on Augustinian monastery. The monastic life and cold formatism of Roman Catholism did not satisfy the longing in his heart for peace with God. In his studies of the book of Psalms, Romans, and Galatians over a periodRead MoreThe Digital Camera Industry (Comparison of Canon and Sumsung)3760 Words   |  16 PagesI. Executive Summary The purpose of this report is to develop an understanding of how the digital camera industry operates in today’s society as well as several factors, which influence consumer behaviour in the buying process. This report uses Canon Inc as an illustration along with the discussion of each topic. Firstly, this report will discuss the background and size of the digital camera industry. The digital camera industry is getting bigger with the technological advancements in society