Taxation is one of the most common methods used for financing nations around the world. Governments use tax money to provide public services and goods, social welfare, and apply financial policies to reduce unemployment and inflation. The government of Iran will not be able to obtain a social development or welfare until it develops this type of infrastructure. Economic indicators must be promoted to increase revenue streams and it is difficult to create a culture where the citizens voluntarily and willingly pay taxes to support such a nation (Pourkiani, Asgharpoor & Hosseini ,2015).Tax evasion is an illegal action in which taxpayers attempt to avoid paying actual tax related to tincome. Farayola, (1987) asserts that tax evasion is to hide numbers with the intention of not paying the actual tax liability. One of the distractive problems with the Iranian tax collection system is tax evasion phenomena Some taxpayers in Iran with intention of tax evasion prepare two sets of financial documents, one …show more content…
It is important to be presented with clarity. One of the critical problems with the Iranian tax system is tax evasion phenomena. In general, people think about how to pay less taxes or do not pay taxes at the end of the tax year (Pourkiani, Asgharpoor&Hosseini , 2015). In Iran, people have negative feelings about taxes and historically view tax agents negatively. Confidence is low in the tax system in Iran and measures should be developed to increase the people’s faith and create trust. The tax is a social share of those working and living within the society. An economic index is used in place of calculating household income. “Iranian taxation laws are highly complex and inconsistently applied. There are virtually millions of people who do not pay taxes in Iran and hence operate outside the formal economy.” (Bakhshi, Mohammad, Eshraghian, M. R., &Seifi,
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
Introduction: In the year 1862 during the civil war congress implemented the first income tax in America. It was 3% per year. However, it was not until 1913 when the 16th Amendment to the Constitution was passed, which granted the government the ability to impose a tax on individuals’ income. Since then it has been an issue to determine how much people should be taxed. Tax rates in America change drastically; for example, in 1963 a person in the highest tax bracket would give 90.8% of their income to the government. In contrast, that same person would only pay 28.0% in 1988. The tax rate for income tax is an issue because for every dime that someone pays in taxes is one dime that they are not able to spend themselves. Additionally, people
The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose great deal of money complying with the tax code. Resources that are currently wasted on record keeping, filing forms, learning the tax code, litigation, and tax avoidance. The cost of complying with the current tax code totals about $200 billion annually, or $700 for every man, woman, and child in America (Armey 1). The overwhelming consensus that the current tax system is inadequate has ignited the search for tax reform. There are numerous proposals for tax reform; one particular proposal brought forth by various conservatives is the idea of national flat rate income tax. The idea is to replace the current income tax with a single rate that everyone pays.
the example of taxation which is the first of its kind on this particular product. The author is
In the 1970’s Iran, under Shah Mohammad Reza Pahlavi was a very centralized military state that maintained a close relationship with the USA. The Shah was notoriously out of touch with working class Iranians as he implemented many controversial economic policies against small business owners that he suspected involved profiteering. Also unrestricted economic expansions in Iran lead to huge government expenditure that became a serious problem when oil prices dropped in the mid 1970’s. This caused many huge government construction projects to halt and the economy to stall after many years of massive profit. Following this was high rates of inflation that affected Iranians buying power and living standards. (Afary, 2012) Under the Shah, political participation was not widely available for all Iranians and it was common for political opposition to be met with harassment, illegal detention, and even torture. These measures were implemented by the Iranian secret police knows as ‘SAVAK’. This totalitarian regime combined with the increasing modernisation of the country paved the way for revolution.
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...
The law that applies to the crime of evading taxes in the United States of America is under section 7201 called Attempt to defeat or avoid tax. It states that “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall. In addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than five years, or both, together with the costs of prosecution.” The violation of this law is evident where Erik Fresen who served in the Florida House of Representatives evaded to pay tax for eight years while in power and accepted the same mistake of voluntarily violating the legal duty.
Introduction Taxes; who benefits and who gets ripped off focuses mostly on Federal and county taxes and not on state taxes. This report aims to give the reader some insight on taxes: Why we have them, what types of benefits they supply, who benefits from them, and who gets screwed by them. It informs the reader of the different types of taxation, where the money comes from and where it goes. How can people avoid some tax increases? But most of all, this report informs the reader that there is an incredible amount of money being wasted by the federal government through overspending and irresponsible behavior of government departments. This overspending has created a deficit that has caused billions of dollars in damage to the credit of the country. As a result of these excess taxes, the American taxpayer is getting ripped off by paying for waste in government. Most people in this country are being ripped off in the amount of taxes they pay due to corruption gover...
The purpose of this paper is to illustrate the layout of taxation. I will differentiate the types of taxes and the roles that they serve currently. Subsequently, I will explain what equity, efficiency, effectiveness and transparency (EEET) are and show how they apply to taxation as a whole. Lastly, I will conclude how the EEET applies to the four tax types.
Japan - a sovereign unitary state composed of 47 prefectures, bringing together 1,718 municipalities, towns, districts, each of which has its own budget.
A revolution is a mass movement that intends to violently transform the old government into a new political system. The Iranian Revolution, which began in 1979 after years of climax, was an uprising against the Shah’s autocratic rule resulting in much religious and political change. Shah Muhammad Reza Pahlavi made efforts to remove Islamic values and create a secular rule and “westernize” Iran through his White Revolution. In addition, his tight dictatorial rule and attempts at military expansion felt threatening to the people, who desired a fairer governmental rule immensely influenced by Islam. Afterwards, governmental affairs became extremely influenced by Islamic traditions and law which created changes religiously and politically for years to come. Although the Iranian Revolution was both a political and religious movement in that it resulted in major shifts in government structure from an autocracy to a republic and that Islamic beliefs were fought to be preserved, it was more a religious movement in that the primary goal of the people was to preserve traditional ideology and in that the government became a theocracy intertwined with religious laws and desires of the people.
Taxation is a compulsory levy imposed on the income, value of goods and services of individuals, partners and companies by the government. It is can be said to be an approach of imposing tax on the citizen. This imposition of tax, is expected to yield income which should be utilized in the provision of both basic and substantial infrastructural amenities, both social and security, as well as creates conditions for the economic well-being of the society at large.
The government use of taxes plays a crucial role in today’s economy as well as personal finances, it has and will continue to leave its mark on the world we live in.
Current problems include a small tax base and extended tax exemptions for the public. The culture of the people, along with a lack of awareness regarding services that are given by the government, lead to a low share of taxes collected. Tax revenues have not played as large a role in Iran’ economy because the country has instead relied upon revenues from natural gas and oil resources. Economic fluctuations affect tax revenues and it is unlikely to change in the current situation. When comparing Iran’s ratio of tax revenues to the nations GDP (7.3% in 2009) with other developed countries such as England (36%) , Germany (40%) and France (49%), Iran has the lowest percentage (Pourkiani, 2000000). The tax system in Iran is significantly underperforming compared to other developed
In Australia everyone is entitled to pay tax on their income based on Income Tax Assessment Act 1997 (ITAA 1997), ‘Income tax is payable by each individual and company’ and so forth. Peter has fallen under the category of paying the tax on his income and assets. Peter is liable for his receipts for 2014/2015 and 2015/2016 and will need to calculate your taxable income and tax liability.