What is tax?

Tax as a word now is used the money that is collected by t5he government of a state in order to have enough fund to smoothly run the affairs of the state. Taxation is compulsory levies imposed on the citizens of a country are up to the age of paying tax. The laws that govern rates, procedure and qualifying items for taxation are called the “the tax laws” or Finance Act for those are living in UK.

We have both the direct and the indirect tax. Direct taxes are those taxes that are directly charged to taxable income of taxable persons while indirect tax are those taxes that are levied on middle men that will eventually be borne by the end user of a particular taxable product. A good example is the Vat (value added tax).A value added tax is the compulsory levy imposed on the extra value added to a product by the manufacturer which will ultimately be borne by the consumer of the product.

Government use monetary or fiscal tools to control money supply in a country and taxation which is the process fashioning out efficient ways of administering tax happens to be one of the fiscal tools that the government can use to control things like inflation and unemployment in a country.

Taxation

Objectives of taxation.Tax is a compulsory levy on individuals and companies by the state to meet the expenses of the government. Taxation is imposition of compulsory levies on persons or other entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue (money that a business or organization receives over a period of time, especially from selling goods or services) for government expenditures. One useful way to view the purposeof taxation is to distinguish between objectives of resources allocation, income redistribution, and economic stability. Economic growth or development and international competitiveness (the ability of a company or a product to compete with others) are sometimes listed as separate goods. In the absence of a strong reason for interference, such as the next to reduce pollution, the resourceallocation objective is furthered if tax policy does not interfere with market – determined allocations. The redistributive objective is to lessen inequalities in the distribution of income and wealth to the extent they are considered excessive and unjust. The stabilization objective is the maintenance of high employment and price stability.

Insurance

Insurance,the insurer and the insured. To insure means to buy insurance to protect yourself against something had happening to you, your family or your possessions. The insurer is a person or company that provides insurance. The insured is the person or people who are insured. Insuranceis a contract in writing between an insurance company and the insured, whereby the insurance company will pay the insured a stated sum of money on the happening of a stated event. Frequently the words insurance and ‘assuranceare used in the same way. In return for a specified amount in the event that the insured suffers loss through the occurrence of a contingent event covered by the insurance contract (insurance policy). By pooling the financial contributions of a large number of policyholders, the insurer is usually able to absorb losses incurred over any given period much more easily than would uninsured individual. While  the destruction  of an automobile  in a traffic accident imposes a heavy financial loss on an individual, for example, one such loss is of relatively small consequence to an insurer who is collecting sufficient premiums ( insurance premiums is the money that you pay regularly to an insurance company) on a large number of automobiles. 

Definition

A fee charged (levied) by a government on a product, income or  activity. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important use of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non – payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi – government agency, which tend to finance themselves largely through taxes.

Process by which a taxation authority tries to assure that all taxable property under its jurisdictions assessed for property taxes at the same percentage of its market value. This percentage  is called equalization rate.

An appraisal term used to describe assessed values that have the same relationship to market value, implying an equalization of the tax burden.

A title insurance policy that protects the interest in a collateral property of a mortgage lender who originates a new real estate loan.

Taxes in Europe – Tax reforms

The “Taxes in Europe – Tax reforms “database (TEDB )is the European Commission’s on – line information tool covering the main taxes in force in the Europe Member States. The system contains information on around 600 taxes, as provided to the European Commission by the national authorities. 

The new “Tax reforms” database (TAXREF) is entailed by the update of the TEDB. It collects information on tax reforms in the member states in a structured way. It covers reforms in eight important tax categories: Vat, PIT,CIT, Social Security contributions paid by employees, Social Security contributions paid by employers and the three EU harmonized Excise duties on Alcoholic beverages, Energy products and Tobacco products. TAXREF is an innovative tool to analyses trends in taxation in the member states in a timely way. It revenue generated how European tax systems are evolving over time.

Access to the databases is free for all users. The information can be found quickly and easily using the search tool.

What type of information is available? 

The “Taxes in Europe” database contains for each individual tax, information on its legal basis, assessment base, main exemptions, applicable  rate(s), economic and statistical classification, as well as the revenue generated by it.

The information is listed in the form of a downloaded file.

The  “Taxes in Europe” database is not meant to constitute a reference for legal purposes. 

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