PROBLEMS OF TAX ASSESSMENT AND COLLECTION SYSTEM

Top PDF PROBLEMS OF TAX ASSESSMENT AND COLLECTION SYSTEM:

Assessment of Tax Collection System and Its Challenges on Category ‘C’ Tax Payers (The Case of Nekemte Town)

Assessment of Tax Collection System and Its Challenges on Category ‘C’ Tax Payers (The Case of Nekemte Town)

According to Lee and Richard (1998), in different tax regimes of many countries, taxes are levied on different sources of income classified in to some number of segments. Largely, countries set their source of income tax taxpayers in to small, medium, and large taxpayers mainly depending on the amount of income derived by the taxpayers. Tax law frameworks of different countries including Ethiopia provide specific rules governing the assessment method, tax rate, accounting period, deduction, exemption, and other related guidelines for each of the above listed group of taxpayers. Although the impacts of application of different types of income tax assessment mechanisms would also deserve discussion, the theme of this article is on the ‘efficiency ‘of the standard assessment as implemented for assessing income tax liability of the small businesses, contextualized as ‘Category C Taxpayers’ (taxpayers whose annual income turnover is less than or equal to 100,000 Birr) in Ethiopia (Income tax Proc. no. 286/2002). During the initiation of the Income Tax Proclamation No.286/2002, there have been many expectations to be optimistic in one hand and concerning issues on the other hand about the efficiency of the provision of standard assessment to assess income tax liability of category C taxpayers. The expectations emanate from the very nature of standard assessment and its supposed solution for easing the problems that used to be manifested. Conceptually, income tax assessment refers to an impartial determination of the amount of tax for a given item that is subject to taxation. However the subsequent enactment of the regulation for then better regulatory purpose has come with a little room for reducing the inherent problems of the hard to tax categories or groups. The prevailing shortcomings of tax assessment of these groups include investment of extra administration cost, escaping of tax net, under-taxation, low tax compliance behavior, and/or uncertainty on the part of the tax authority and taxpayers attributable to the difficulty of locating the actual amount of tax liability to be paid. This study focus on business income tax in category ‘C’ because business income tax categorized under ‘A’ and ‘B’ income taxes liabilities are determine based on their book of account (financial statement). On the other hand, Category ‘C’ taxpayers their daily income is estimated by assessment committee and income tax liabilities is determine by tax collectors rather than declaring their income by themselves.
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Assessment of Value-Add Tax Collection Problems: The Case of Addis Ketema Sub-city, Addis Ababa

Assessment of Value-Add Tax Collection Problems: The Case of Addis Ketema Sub-city, Addis Ababa

mentioned as follows: the absence of efficient VAT administration system, existence of eligible business entities that have not yet registered for VAT, existence of some VAT registered business enterprises that have collected the tax with illegal invoice and retain the tax for themselves, the presence of taxpayers that did not declare the tax they collected as per the law, low level of tax awareness of the community, existence of VAT registered business enterprises that offers customers an opinion to pay or not to pay VAT for the purchases they made in the market and provisions of forgery VAT invoices as well as the lower level of the purchasing power of the community which increases the needs of searching goods and services that excludes VAT value from its prices. Hence, in order to alleviate these challenges, the minister has to recruit sufficient and capable employees, devote time on consistently educating the taxpayers through different medias, improve the collection network and strengthen in the areas of auditing, follow-up, and enforcement as well as consistently follow the implementation procedures and taking serious actions over those who provide understated financial statements and forgery VAT invoices. In order to gather more detailed information’s in addition to the problems identified and stated in the above paragraphs, some interviews have been conducted by the researcher with come selected higher officials of the minister. This was maintained by asking them what are the root causes that hider the proper implementations of the VAT rules and regulations. Accordingly, the respected higher officials of the minister put the following factors as the major problems of VAT implementations in the country:
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Perspective of Problems and Countermeasures by the Analysis of the Collection Data on the Personal Income Tax Collection and Administration of High Income Groups

Perspective of Problems and Countermeasures by the Analysis of the Collection Data on the Personal Income Tax Collection and Administration of High Income Groups

In recent years, the collection and administration of personal income tax of high income groups have always been the emphasis and difficulty of the tax authority. This article analyzes the per- sonal income tax collection and management data of GZ city Y area local taxation bureau, and finds that the current tax authorities on the personal income tax levy management have some problems, such as the individual income tax of the total amount of wages and salaries accounts for a large proportion of the total individual income tax, and it is difficult to regulate the individual business production and operation income and labor remuneration income, and the number of foreign in- dividuals hidden income rise, etc. The working practice is also connected to discuss and analyze the above problems, putting forward many measures to establish and improve the system of tax assessment, building effective network for assistance and protection of tax, strengthening the col- lection and management of various income taxes, establishing individual tax registration system and personal bank account system, reinforcing audit and penalties and so on.
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Tax compliance, self assessment and tax administration

Tax compliance, self assessment and tax administration

It has never been easy to persuade all taxpayers to comply with the requirements of a tax system. Tax compliance is likely to become a more significant aspect of tax policy as most of the old problems remain and new considerations are raised by developments such as self- assessment, the emergence of the global economy and electronic commerce. These factors have policy implications about the way the tax system should be administered. In particular, one risk with self-assessment is the temptation to rely on a harsher enforcement regime. It has been alleged from time to time, for example, that the Internal Revenue Service in the USA has sometimes relied on over-zealous enforcement or unduly punitive methods of securing compliance with their self-assessed income tax system (Payne, 1993). However, there seems to have been signs of fundamental change in the approach of some tax agencies with respect to taxpayers. For example, in the United States, the Internal Revenue Service, long known for its very firm approach to taxpayers, has been considering a rather different stance. In its document Reinventing Service at the IRS (Internal Revenue Service, 1997) Vice President Al Gore and Treasury Secretary Robert E. Rubin stated that „We must have an IRS that is on the taxpayers‟ side, providing the help they need‟ but „We know we have a long way to go‟. That report addressed the question „What if the Internal Revenue Service thought of taxpayers as customers?‟
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Revenu Québec Collection of Tax Debts and Support Debts

Revenu Québec Collection of Tax Debts and Support Debts

As a taxpayer or agent, you are required to file var- ious documents with Revenu Québec, such as an income tax return and returns respecting consump- tion taxes and source deductions. You must also pay any amounts owed. If the documents are not filed, or if the payments are not made within the prescribed time limit, your file is forwarded to the collecting authority for recovery of the amounts owed. In this case, a processing fee will be applied when a staff member takes charge of your file. As a rule, support-payment files are sent to the collecting author- ity in cases where a person has not responded to a demand for payment sent by Revenu Québec. For more information on this subject, you may obtain the folder Support Payments: Demand for Payment (IN-908-V) at any Revenu Québec office or from Revenu Québec’s website at www.revenu.gouv.qc.ca.
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INCOME TAX ASSESSMENT.

INCOME TAX ASSESSMENT.

been distributed out of profits upon which any company has paid or is liable to pay tax under the provisions of any Income Tax Act which comes into operation after the t[r]

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The Unions Tax Initiative: More Problems

The Unions Tax Initiative: More Problems

The Texas margin tax has created substantial increases in the costs of compliance for business. Nevada businesses will face these same increases in addition to paying the tax at a much higher rate. This tax is a full- employment bill for accountants and tax attorneys. And don’t forget, if the initiative goes to the voters and is approved, it will be three years before any changes can be made. The question will then become to what extent can the Tax Commission do regulations? Remember that in 2003, the Commission wrote law in order for the tax provisions of SB 8 to work . Would regulations they propose be viewed as trying to change law?
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Federal Tax Problems in Community Property

Federal Tax Problems in Community Property

Federal Tax Problems in Community Property SMU Law Review Volume 8 | Issue 2 Article 2 1954 Federal Tax Problems in Community Property Oliver W Hammonds George E Ray Follow this and additional works a[.]

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A Thermometer for the Tax System: The Overall Health of the Tax System as Measured by Implicit Tax

A Thermometer for the Tax System: The Overall Health of the Tax System as Measured by Implicit Tax

A Thermometer for the Tax System The Overall Health of the Tax System as Measured by Implicit Tax SMU Law Review Volume 56 | Issue 1 Article 3 2003 A Thermometer for the Tax System The Overall Health[.]

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Tax system and tax reforms in India

Tax system and tax reforms in India

This paper is part of a wider research on South-East Asia countries’ taxation carried on under the supervision of. V. Tanzi. India is a federal republic and a big, highly populated and poor country, which however since some years has entered the catching up stage of development and shows im- pressive rates of GDP growth. General Government budget is structurally imbalanced and public debt stays high. Public spending (about 25 percent of GDP) is mainly devoted to general services, defense, and the support of economic activities, rather than to public health and welfare programs. Total fiscal pressure (about 17 percent of GDP) is in line with per capita GDP and is shared evenly enough between central and states governments. The structure of the tax system is not much be- yond the Musgravian “early stage”. A complex structure of taxes on goods and services is largely the main heading of the tax system and it is difficultly moving towards a VAT-kind structure. Di- rect taxes still are in an infant state, both as weight as well as structure. Import duties remain at not negligible levels. Social contributions are entirely lacking. A tax system of a country like India unavoidably raises more than one problem: foremost among these problems appear to be a too large dominance of a complex and obsolete indirect taxation and the fiscal relations among gov- ernment layers. The road to updating and improving the Indian tax system has been entered since the early 1990s, but the reform is still largely to be accomplished. Introducing VAT – so success- fully adopted in other developing countries – is the most striking but not the only example.
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Chapter. Canada Revenue Agency Collection of Tax Debts

Chapter. Canada Revenue Agency Collection of Tax Debts

8.69 In 1994 we noted that the scoring of delinquent accounts by risk was ineffective and that profiles of tax debtors did not exist. The Department agreed that it needed to establish an appropriate system for risk scoring and to develop debtor profiles. Since then the Agency has updated the rudimentary risk scoring in its computer systems, but it still has no profiles of tax debtors. The Agency expects the new technological platform called for in the strategic vision to help it prioritize and allocate work based on assessed levels of risk. Since little of the information needed to do comprehensive risk assessments currently exists in a usable form, it will have to be assembled and incorporated into existing or new technology platforms before results can be achieved.
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The Impact of the Current Tax Collection on the Economic Development of Iran

The Impact of the Current Tax Collection on the Economic Development of Iran

Taxes are the essential factors in dealing with the excess demands for the goods which are followed by the social welfare and improvement. Taxes are the only solutions to finance the government in order to implement the development plans as the significant plans of developing a country (Floza, 1997). Taxes are intended to reduce the gap between the poor and rich classes (Taghavi, 1997). That is, social welfare belongs to the public and most of the people are in a proper social and economic situation when the income is distributed fairly (Behkish, 2002). In a developing country, taxes are the most effective factors for transferring the resources and directing them towards the productive goals. Taxes should work so that they could reform the investment trend. In doing so, taxes are not levied to eradicate the private investments but they should encourage these investments to be properly established in a good manner (Mousavian, 2003). Taxes should not merely perform for the purpose of raising earnings but they should mainly seek for creating incentives for increasing saves and investments. Consequently, tax is an indirect tool held by the government by which it could impact the functions of an
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Research on the Construction of Tax Collection and Administration System for Natural Persons —Taking Live Streamers as the Research Object

Research on the Construction of Tax Collection and Administration System for Natural Persons —Taking Live Streamers as the Research Object

DOI: 10.4236/jss.2018.65008 91 Open Journal of Social Sciences in total given her 45,000 yuan’s worth of gifts. When we add up the numbers we find that the value of gifts she had received is 165,000 yuan in total. These dates were all taken on a Wednesday night, so it means that the live streamer had re- ceived such a large amount of money in merely three days. Let’s suppose that there are 30 days in a month, and then the amount of gifts for the live streamer is 1,650,000 yuan per month. Normally, the platform would take 50% of the profits, and the guild she belongs to would take 30%. Therefore, the pre-tax monthly income of the live streamer is 1,650,000 * 50% * 70% = 577,500 yuan. Even when we assume that the No.1 on the weekly contribution list is her own guild, and subtract them from the total income, the pre-tax monthly income of the live streamer is still 450,000 * 50% * 70% = 157,500 yuan.
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Check Post And Toll Tax Collection Using Rfid

Check Post And Toll Tax Collection Using Rfid

The modernization of transport has become one of the essential signs for the urban modernization level, the increase in the number of cars leads to serious problems concerning transport system. With the development of the technology of computer, communication, electron, information and intelligence has become important factors in achieving convenient and efficient transport system. According to these circumstances, the Intelligent Transport System (ITS) came into existence [1]. Collection of transportation information systems based on conventional detection techniques such as loop detectors, video image processing, and Dedicated Short Range Communication (DSRC) leads to high installation and maintenance costs, the high costs prevented the proliferation of these detection techniques [2]. Radio Frequency Identification (RFID) technology is one of the most rapidly growing segments of today's Automatic Identification Data Collection (AIDC) industry [3]. Using "RFID tags" on objects or assets, and "RFID readers" to gather the tag information, RFID represents an improvement over bar codes in terms of non-optical proximity communication, information density, and two-way communication ability. It can automatically identify target and obtain relevant data without contacting with the target. It has many advantages such as high precision,
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The Effect of Tax Amnesties Programs on Tax Collection and Economic Performance: A Global Macro Economic Analysis

The Effect of Tax Amnesties Programs on Tax Collection and Economic Performance: A Global Macro Economic Analysis

There is ambiguity in different countries in favor of the tax amnesty programs. The system of non-documented economy still exists at large in various countries. Tax amnesties are considered illegal, unlawful, in-humanistic, unjustified with genuine taxpayers, benefitted to tax evaders and money launderers, etc. Generally tax amnesty concept is drawn as a legal way to whitening black money. The success of tax amnesties are measured in terms of tax revenue yield and/or tax compliances and repatriation of undisclosed foreign assets. The tax evasion and tax avoidance is not only with developing countries but also in developed countries. In oil producing countries major source of revenue generated from oil export, therefore such countries running simple tax systems. The countries having major source of government revenue collected from taxation, such countries have several complexities in taxation system. One of the reasons behind non compliance of tax system and tax evasion is the complexity in tax system. Tax authorities are continuously struggling on automation and integration of tax system and at the same time creating simplicity and ease of doing business. Tax amnesties are considered alternate solution to tax evaders and encourage taxpayers joining taxes legal frame work (Tofan, 2017). This research will determine if tax amnesty is the way out towards improvement in economy then macroeconomic show positive trend cross countries.
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The Collection Efficiency of the Value Added Tax: Theory and International Evidence

The Collection Efficiency of the Value Added Tax: Theory and International Evidence

A one standard deviation increase in durability of political regime, and in the ease and fluidity of political participation, increase the first VAT collection efficiency measure (C-ef[r]

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Consumption tax collection models in online trade in digital goods

Consumption tax collection models in online trade in digital goods

This chapter has illustrated that the reverse-charge mechanism is not an appropriate mechanism to collect VAT on the supply of electronic services. This mechanism relies on the knowledge and honesty of private consumers of electronic services. Due to a lack of knowledge on tax legislation - the compliance burden is low. Currently, SARS has difficulty enforcing this legislation because the costs of doing so exceed the benefit. This chapter has also illustrated that there is a need for SARS to put appropriate measures in place to collect VAT in situations where a consumer imports services to South Africa for personal consumption. The inability to verify a consumer’s identity means that SARS is incapable of conducting an audit on the transaction. This chapter shows that SARS is not able to enforce the VAT Act on these types of transactions as the reverse-charge mechanism does not adequately cater for the taxation of imported services into South Africa.
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Taxation without Information: The Institutional Foundations of Modern Tax Collection

Taxation without Information: The Institutional Foundations of Modern Tax Collection

latter model is famously inspired by Gary Becker’s economic model of crime: when Allingham and Sandmo conceptualize an individual taxpayer’s compliance decision, they portray the person in a way similar to a criminal weighing the costs and benefits of a crime. Gary Becker, Crime and Punishment: An Economic Approach, 76 J. P OLIT . E CON . 169 (1968). However, Becker did not set out to explain why ordinary people do not commit crime by his economic model: his economic theory of deterrence is intended only to apply to criminals. Allingham and Sandmo, on the other hand, conflate the ordinary taxpayer deciding what to enter on his tax return and a criminally- minded person ready to cheat on his taxes where possible. That is to say, they elide the distinction between the ordinary person and the criminal in depicting the rational choice about tax compliance. Whether this is a plausible depiction of the average taxpayer’s psychology is controversial. Those who favor the Allingham and Sandmo model presumably find the characterization more (or at least no less) plausible than representations of the average taxpayer as pro-social, conscientiously law-abiding, and simply oblivious to the potential rewards of cheating. The argument I make in this Part does not require one to take a position directly on this controversy.
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METHODOLOGY OF PROPERTY TAX COLLECTION ESTIMATING PROPERTY TAXES / EXAMPLES

METHODOLOGY OF PROPERTY TAX COLLECTION ESTIMATING PROPERTY TAXES / EXAMPLES

The South Carolina Property Tax Rates Report is produced annually to provide information for state and local officials on millage rates for every county of the state. The SC Association of Counties requests categorical breakdowns of millage rates and fees in order to provide a complete listing of charges by county. We appreciate the contribution of all the County Auditors in developing each year’s report. The information provided for each county is listed below in the order that it is presented in the report.

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Smart Garbage Collection System

Smart Garbage Collection System

Abstract: Waste collection and disposal is a complex process that requires the use of money and elaborate management of logistics. This paper will elaborate the structural design working and overall hierarchical description of the system. In this system, without making much of the alterations to the traditional garbage vehicle the proposed system could be mounted on the top of the vehicle canopy for automatically filled level detection. The design is based on two stereoscopic cameras dealing with depth ranging information for filled level detection. Based on deep simulation with image processing and trialling at day to day basis. The core of the proposed design lies depth estimation through a 3D model construction of captured image in using open source system. A tabulation of simulation data with field test experiments verify that design system works energy efficiently and in an orderly manner.
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