principles of taxation (what is taxation?)

There were not scientifically argued principles of taxation. They couldn't find reflection in legal acts. The result of this is, that tax taxation was based on subjective and unfair approaches. Only over time they realize, that during the taxation should be provide taxpayer's interests and this process must subordinate to some principles.

     In XVIII-XIX centuries formed and in XX century adjusted principles of taxation, which relied on financial theory and taxation practice in our time formed in a system. This system of taxation we can join in three relations:

Creating principles of taxation

   

                                                                           

Economic

Organizational

Legal

Creating principles of taxation

Let's consider every principle in details.

Taxation Economic principles:

   Taxation Economic principles schematically we can present in this way:

taxation economic principles

                           

equality and justice

efficiency

fold

symmetry

abundance

 

solvency

 

utility

                   Taxation Economic principles

At first, we must separate principles of equality and justice. According to this principle tax burden distribution must be equal and each taxpayer must pay fair share in State Treasure. Every legal person must have part in State requirements of financing. At the same time, taxation must be universal and evenly distributed between taxpayers. Equality and justice of taxation must be provided in two aspects: vertical and horizontal.

    By vertical aspect of equality and justice people must pay payments based on their income. It couldn't be in other way, if we remember taxation system of old time in Western European countries. As it known, in that time, taxation system was based an indirect taxes and mainly subjects of primary services were applied.