Samenvatting
tax388 ch1 principles of tax summary
- Vak
- Instelling
- Boek
this is a summary on the work covered in ch1 in the SILKE: South African Income Tax textbook as well as extra notes from the lectures
[Meer zien]Voorbeeld 1 van de 2 pagina's
Voorbeeld 1 van de 2 pagina's
In winkelwagen
In winkelwagen
gesponsord bericht van onze partner
Gekoppeld boek
Titel boek:
Auteur(s):
- Uitgave:
- ISBN:
- Druk:
Meer samenvattingen voor studieboek
-
tax388 ch7 natural persons summary
-
tax388 ch4 specific inclusions summary
-
tax388 ch5 exempt income (for A1S1)
1 beoordeling
Door: joubertanja505 • 6 maanden geleden
Verkoper
Volgen
jana20
Ontvangen beoordelingen
Voorbeeld van de inhoud
ch1 general principles of taxationTuesday, 20 February 2024 19:21
outcomes of this chapter:
- define & understand taxation
- describe components of taxation
- evaluate the tax policy by applying the principles
overview [SILKE p.1]
the formulation of a tax policy is concerned with the design of a tax system that is capable of financing the necessary level of public
spending, by government, in the most efficient & equitable manner.
there is a relationship between a government & its citizens - this is referred to as the social compact. taxes are defined as compulsory
payments that are imposed on citizens to raise revenue i.o.t. fund general expenditure - e.g., education, health & housing for the benefit
of society as a whole.
types of taxes
1. direct taxes: taxes imposed on a person [natural persons, companies & other persons as defined]
○ income taxes
○ wealth taxes
○ corporate taxes
○ estate duty
2. indirect taxes: taxes levied on transactions & that are collected by intermediaries on behalf of SARS [persons bears tax burden, but
the intermediary pays tax over to SARS]
○ STT
○ customs & excise duty
○ transfer duty
○ value added tax [VAT]
○ fuel levy
○ environmental taxes
○ sugary beverages levy [SBL]
tax base [SILKE p.2]
the amount on which tax is imposed - this is usually determined by legislation provisions that provide guidance on what should be incl. &
excl. from the tax base. amounts incl. do not necessarily correlate with our normal understanding of economic income.
while a specific tax base will be defined within each piece of legislation, a tax base is broadly based on income, wealth, or consumption:
○ an income tax base incl. income earned or profits generated
○ a wealth tax base consists of the value of assets or the value of property
○ a consumption tax base encompasses the amount spent by taxpayers on goods & services
how should taxes be levied? [what do you think?]
i. all taxpayers should pay the same R amount of tax irrespective of their resources - wealth & earnings
ii. all taxpayers should pay the same % of their income taxes
iii. higher earning taxpayers should pay a higher % of their income in taxes - according to a sliding scale
tax rate structure & incidence [SILKE p.2] [see tax rates (SAICA) p.295 - schedule 1: rates of normal tax (section 2)]
tax rates are expressed as:
a. fixed % [e.g., value added tax has a fixed % of 15%]
b. amount per unit [excise duty on each packet of cigarettes]
c. sliding scale - variable % [natural person's income tax rate]
the following terminology is important when wanting to understand tax rates
• marginal tax rate: tax rate that will apply if the tax base increases by R1
• statutory tax rate: tax rate imposed on tax base as determined by legislation
• average tax rate: tax rate at which tax is paid with reference to the total tax base of a taxpayer
• effective tax rate: effective tax rate is often used as a measure to facilitate comparability between tax liabilities of different taxpayers
tax rates are usually determined with reference to structures
- progressive tax rate structure: tax rate increases as the tax base increases
- proportional tax rate structure: tax rate does not change in line with the tax base :. flat-rate tax
- regressive tax rate structure: tax rate increases as the tax base decreases
principles of taxation [SILKE p.5]
it is highly unlikely that a tax policy will ever be considered to be perfect, tax policy can be benchmarked against the commonly accepted
principles of a good tax system
▫ equity: taxpayer's taxable ability or capacity
ch1 Page 1
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, creditcard of Stuvia-tegoed 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 jana20. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €3,40. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 79223 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen