Taxation System of UK - Essay Example

Only on StudentShare

Extract of sample
Taxation System of UK

Finally the system of collecting taxes must be efficient. For example if the government spends more in order to collect a given amount of tax money it is useless having a system of taxation. In the UK the current system of taxation has a number of shortcomings such as collective bias in favor of those who are able to pay and structural deficiencies at the deduction level.
The British system of taxation is basically determined by a desire to act in conformance with the age old principles of taxation as enunciated by Adam Smith. In the first instance taxes must be fair or equitable; secondly they must be convenient; thirdly they must be neutral; fourthly they must be efficient; fifthly they must be simple; and sixthly they must be adequate (Jones & Catanach, 2008). Yet how far these principles have been adhered to in the current situation in Britain is to be decided by each individual because there is much more to be desired in the British tax system with reference to the equity principle and the government's efforts to redistribute income on a nation-wide basis.
According to the first maxim of Adam Smith as noted above every person should pay in proportion to that which is based on their respective revenue earnings and to the extent to which they enjoy protection of the government. Simply it is the "ability to pay" principle. ...
Download paper

Summary

According to Adam Smith there are four main principles or maxims of taxation - equity, certainty, convenience and efficiency. Equity refers to equality in the distribution of taxes so that every tax payer has the capacity to pay what he has been asked to pay…
Author : bbatz

Related Essays

UK Politics
Hover the UK does not have a written constitution but it's governed by convections which are non statutory rules and are equally binding.…
4 pages (1004 words) Essay
UK Taxation System Essay
There are certain types of income that do not attract tax. They are benefits, income from tax exempt accounts and special pensions. Residents of UK are eligible for tax free allowance called personal allowance, which is an amount of taxable income which the resident is allowed to earn each year. This allowance is free of tax. For the year 2008-2009, the tax free amount is fixed at '5,435. If the individual is over the age of sixty five, this amount is likely to increase. A registered blind person can claim tax free blind person's allowance. Income tax is applicable on taxable income after the…
9 pages (2259 words) Essay
Recession in UK
Bankruptcy and unemployment on the other hand rises (Office for National Statistics, 2010).…
5 pages (1255 words) Essay
UK Aviation Policy
Air travel is of primordial importance to the United Kingdom's economy and prosperity. In the last 30 years there has been a five-fold growth in air travel. This vibrant air travel opened up opportunities: half of the population flies at least once a year, and many citizens have began flying far more often than that. The main challenge of UK aviation policy is to deal with the pressures caused by the increasing need to travel whilst at the same time retaining their commitment to protect the environment in which we live. …
7 pages (1757 words) Case Study
UK Tax System
With the government's source taken from the public taxation always greater than the amount that is intended for use by the government, taxes are levied to fund several programs. Other governmental policies are also geared towards the redistribution of wealth from the rich and poor respectively in relief operations, public education, social security benefits and reparations. However, fundamental methods of collection are not foolproof and possibilities for inefficiencies are always prevalent. Tax policies being a highly political and controversial issue do require extensive analysis and…
13 pages (3263 words) Essay
UK General Elections
Basically, this is achieved through awarding political freedom to all people as it is the main platform for the masses to express themselves. The values of liberal democracy are reflected in its basic system where continuous efforts are undertaken to see that no group enjoys special privileges in the society. The values of liberal democracy can therefore be found in a society which struggles to develop through talent and merit rather than rank, privilege and status. The values of liberal democracy are also seen in programmes and policies aimed at restricting the Government intervention in…
5 pages (1255 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!