taxation

(redirected from Federal Tax)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

taxation

the government receipts from TAXES on personal and business income, expenditure and wealth. Taxes on income include personal INCOME TAX and CORPORATION TAX; taxes on expenditure include VALUE-ADDED TAX and EXCISE DUTIES. Taxes are used to finance government spending and as instruments of FISCAL POLICY in regulating the level of total spending in the economy. See INLAND REVENUE, BUDGET (GOVERNMENT).

taxation

government receipts from the imposition of TAXES on persons’ and businesses’ income, spending, wealth and capital gains, and on properties. Taxes are used by the government for a variety of purposes, including:
  1. to raise revenue for the government to cover its own expenditure on the provision of social goods such as schools, hospitals, roads, etc., and social security payments made to individuals in respect of unemployment, sickness, etc. (see BUDGET, GOVERNMENT EXPENDITURE);
  2. as an instrument of FISCAL POLICY in regulating the level of total spending (AGGREGATE DEMAND) in the economy (see DEMAND MANAGEMENT);
  3. to alter the distribution of income and wealth (see PRINCIPLES OF TAXATION, REDISTRIBUTION OF INCOME);
  4. to control the volume of imports into the country (see BALANCE OF PAYMENTS EQUILIBRIUM).

Taxation takes two main forms:

  1. taxes on income received by individuals and businesses (referred to as DIRECT TAXESINCOME TAX, NATIONAL INSURANCE CONTRIBUTION, WEALTH TAX, CAPITAL GAINS TAX and CORPORATION TAX);
  2. taxes on expenditure by individuals and businesses (referred to as INDIRECT TAXES - SALES TAX, VALUE-ADDED TAX, EXCISE DUTY and TARIFF). In national income analysis, taxation is a WITHDRAWAL from the CIRCULAR FLOW OF NATIONAL INCOME. See PUBLIC FINANCE, INLAND REVENUE.
References in periodicals archive ?
According to a statement issued here on Saturday, the advisory committee headed by Federal Tax Ombudsman Mushtaq Ahmad Sukhera as chairman will have Zahidullah Shinwari, Ziaul Haq Sarhadi, Sharafat Ali Mubarak and Nushat Rauf as its members among others.
The President congratulated him on his appointment as Federal Tax Ombudsman and wished him well in discharge of his new responsibilities.
There are three reasons that well-wrought federal tax reforms can save the federal government money while providing more help to the states.
A federal tax hike of $1 a gallon would raise as much as $130 billion per year--slightly more than the $100 billion profit oil companies captured in 2005--while it promotes oil conservation, shows good stewardship of the gifts of creation, and bankrolls judicious investments in a post-fossil fuel future.
Again, the written advice of the CPA often will be characterized as "preliminary" because it is reasonable to assume that the particular strategies recommended will be explained in more detail either when the client chooses to undertake the strategy and asks how it will specifically affect their estate plan, or the client's lawyer will explain the strategies, which include significant federal tax issues, in a written communication accompanying the estate planning documents transmitted to the client for review.
He calls the federal tax credit discontinuation "short-sighted" policy and says keeping those incentives in place are a valuable tool that keeps Northern Ontario "on par with the rest of the world.
conclusion as to each significant Federal tax issue, the practitioner must not provide o marketed opinion, but may provide written advice that satisfies the requirements of Section 10.
The President's Advisory Panel on Federal Tax Reform held its seventh hearing on April 18, hearing from state and local representatives on the interaction between federal, state and local taxation.
On October 17, 2001, he filed a second 1996 federal tax return--unchanged from the first attaching a statement of election under section 1042 predated to March 4, 1997, a statement from the company consenting to the application of sections 4978 and 4979A predated to March 4, 1997, and a statement of purchase of qualified replacement property predated to March 2, 1998.
He also argued that his e-mail only detailed his personal views that he could make anywhere, even at his tax-exempt Thomas Road Baptist Church, without subverting federal tax law and that the "Falwell Confidential" e-mail was posted on a website owned by his lobbying group, the Liberty Alliance.
No one, however, is complaining or contesting the new federal tax law changes that will benefit owners.
Short of overhauling the entire federal tax system, Congress can work two ways to reduce the complexity of the current tax system and its attendant compliance costs.

Full browser ?