What is tax? definition and meaning #income #tax #department

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#meaning of income tax

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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 uses 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.

arm’s length price
tax base
earned income tax credit
Income baskets
incentive stock option
1120-F Form Schedule V
depreciation recapture
real return after tax
head of household
Tax Reform Act of 1984

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