Taxation is used by thegovernment to generate revenue in order to distribute resources, reduce inequality, and protect local industries. It’s true that taxation rules can be a little burdensome for some businessmen. Different taxation services like ABA Tax simplifies these policies for you. They are known as small business taxation specialist since they always provide financial advice to small businesses to provide them a competitive edge. High tax rates can affect the economy in short run since it would lead to fewer business transactions. Tax base should be as large as possible in order to minimize the burden on each individual.
FOLLOWING ARE THE QUALITIES OF A GOOD TAXATION SYSTEM:-
DIFFERENT SLAB RATES- A good taxation system should have such differential policy, which means burden should fall more heavily on the rich and less on poor. It leads to areduction in income inequalities and ensures equitable distribution of wealth. In the nutshell, allocation of thetax burden should be proportionate to the ability to pay. In this, the poor would feel prestige and won’t hesitate to pay tax
STANDARD APPLICABILITY- Every country has their own taxation system as per the monetary inequalities. This point signifies standard taxation in a single country. A country should initiate a type of tax with thesame rate and standard rules in all the states just to ensure simplicity and accuracy. In this case, businesses dealing in different states wouldn’t face any difficulty regarding tax.
BALANCE BETWEEN TAXES- A good tax system always maintains a balance between different type of taxes, be it adirect or indirect tax. The suitableproportion between taxes gives a more logical framework to the taxation system. Taxpayer finds it to be more meaningful if theproportion is easily understood.
MINIMUM COMPLEXITIES- A good tax system should have simplified rules and regulations. A single clause shouldn’t give birth to two or more meanings. Every individual should be able to easily understand his place in the system. The tax makers shouldn’t sustain any complex terms in the taxation system.
It’s understood and not even practical that all the tax rules will be easy as a piece of cake. A person would definitely require a little study to understand the outline. ABA Tax is known for their taxation services. Their contracts with small businesses have led them toreach a flourishing stage. Their taxation services can explain you the rules in laymen words.
For any Enquiry Email Us at info@abatax.com.au
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