Samenvatting
Full summary - Principles of Taxation
- Instelling
- Katholieke Universiteit Brussel (KUB)
Full summary of the course Principles of Taxation in third year of bachelor in Business Administration at the KUB
[Meer zien]Voorbeeld 3 van de 21 pagina's
Voorbeeld 3 van de 21 pagina's
In winkelwagenVerkoper
Volgen
Voorbeeld van de inhoud
Kul Brussels 2022-2023Principles of Taxation
PART I : The fundamental principles of taxation
1.1. What is a tax ?
- Tax : payment (cash/kind) to pubic authority
- In kind : paying taxes in nature (e.g. with paintings) -> does not often happen
- Mandatory, non-contractual, non-tort (not doing anything wrong just paying taxed bc you
have to)
- Taxes must have a legal basis
- Payments based on contractual obligation are not taxes
- Gift, donation, voluntary payments are not taxes
- Payments on basis of non-contractual liability of tort are not taxes (e.g. fines, when you
purchase set from government)
- Tax : payment without consideration/compensation (do not get anything back)
- Government uses money for duties
- Get indirect support back (healthcare, security)
- The only way of avoiding tax payment is by putting oneself in a situation in which tax is not due
(e.g. not wanting to pay taxes on vehicle -> buy a bike) or to go to countries without taxes (e.g.
Dubai)
- Some taxes are not avoidable (e.g. inheritance taxes)
- Tax : in accordance with a rule of law
- Needs to have a legal basis = principle of legality
- No taxation without representation -> elect people in government and they decode upon
amount of taxes
- Tax : imposed by public authority
- Gov can impose taxes in two ways (nexuses of taxation : attached to state and state is
entitled to levy taxes)
- Person : you are a resident of the country, you pay taxes in this country
- Territory : government can levy taxes over transactions that occur in a state
- e.g. Belgian resident, Belgium will say I levy taxes on your income -> but built vacation
house in France (to rent), get income from that, Belgium will tax your house in France
because you are a Belgian resident but then France also wants to levy taxes because it
is their territory
- Two states claim tax jurisdiction
1
,- Tax : used for purpose of public spending
- Tax money goes in money jar and used for everything
- Environmental taxes : dissuasion of polluting environment -> more and more impact
- Distinction of taxes to payments to the state is important
- Social security contributions : taxes from eco pov but not from legal pov
- Not protected in same way as taxes
- SSC look and smell like a tax but are not bc :
- They are used for specific things (not put in one jar)
- Used for social protection (illness, childcare, healthcare, social security)
- If something happens to you, you get contribution back bc of SSC -> not like a tax
- No direct proportional link
- e.g. pay $10 000 SSC -> next year accident, cannot work anymore -> solidarity (you
may get more from the state than what you gave, or less) -> they give depending on
your need (solidarity and insurance)
- Toll charges and fees
- e.g. France : les péages, fees to dock your boat in the harbour
- Not mandatory -> if you do not want to pay for the highways in France you take bumpier
and longer roads
- Clear compensation : pay bc you know you will get a compensation
- Government decide the price
1.2. What are the fundamental questions of taxation ?
“WHY do we tax and HOW do we tax”
- Why : the benefit of principle
- You pay taxes bc the government gives you indirectly goods and services (army, healthcare)
-> taxes are justified by indirect support from government
- Those who make more use of government support need to pay more
- e.g. a small house does not requires lots of protection but if you have a lot of money and
you have multiple properties -> will need more protection -> need to pay more
- Why : principle of sovereignty
- State has power over you, can levy taxes on you
- How : ability to pay and equally
- Ability : those who can afford more, should pay more -> look at eco capacity
- Equality principle : “equals are taxes as equals and unequals are taxed unequally” (amount
of taxes paid depend on your income)
- Horizontal equity : people in same situation/income should say the same tax amount
- Vertical equity : people not in the same situation should not pay the same tax amount
2
, Progressive tax : the more wealth/income -> the
more taxes you pay
Consumption tax : essential goods (food,
medicine) have lower rate than non-essential
goods (alcohol, tobacco, luxury)
- How : principle of legality
- Tax is valid only if it is written in legislation (scope, base, rate)
- Must be approved -> parliament vote
- Tax system also contains executive decree, administrative regulations,… for
misunderstanding and problems
- If not agree with tax authorities -> cannot go to court
- If minister of finance and taxpayer do not agree -> justice takes on
1.3. The essential elements of a tax
- All taxes have the same basic structure (same important elements) :
1. Personal scope of the tax
- Subjects of the tax : rules determining who is the taxpayer
- Individuals resident or non-resident) : personal income tax (PIT)
- Legal entities : corporate income tax (CIT)
- Individuals or entities acting like eco agents : VAT/GST
- Consumption taxes : VAT/GST (e.g. producers of cigarettes are requires to pay tax)
- Environmental taxes : polluters pay principle -> the more you pollute, the more you pay
2. Material scope of the tax
- Rules on taxable event : what triggers the tax
- Earning income : income tax (PIT, CIT)
- Private consumption : VAT/GST (e.g. going to the hairdresser)
- Providing digital services : digital services tax (e.g.
3. Tax base
- Rules determining the object of the tax : how much
- Price of VAT
- Rules on valuation, deductions
3
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper Marie470. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €6,79. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 50843 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen