Worldwide, people talk about tax reform and government’s vision of the measures taken to improve tax systems there. But how can you measure what a reform program must be good when it comes to tax reform?
Here are five things that each agency must follow the tax when it comes to instituting fiscal reforms.
1. Make the economic process a collection of the most important principles that any program of tax reform should seek to achieve is to make the process more economical. This means that the cost of administration and cost of enforcement of laws and regulations on taxation should be kept to a minimum.
2. Aim for simplicity purposes other than tax reforms should seek to attain is the realization of the tax collection process easier. Many taxpayers complain that tax returns are usually rather difficult task. The main reason for this is largely because the tax authorities are still trying to recruit semi-legal jargon to cover any gaps that taxpayers can use to avoid or evade taxation.
The third tax fairness in addition to making the process economical and simple, the objective of any tax reform should be strengthening the equity in the system of payment of tax. This means that different people make the same amount of revenue to pay the same amount of income. At the same time, people who earn different amounts of income should pay different amounts for taxes, regardless of income.
4th payment easier Creation of a practical system of paying taxes is also on the agenda of all the reform activities. In many countries, who pay taxes is not a difficult task. Even in developing countries, many people are now in a position to pay their taxes with more resources than could the past few years back. All these things are products of reforms. So now that you can fill your statements and even pay your taxes online with your credit card, you should not take for granted.
5. The certainty of payment of the tax reform but should try to establish security in the payment of taxes. This means that taxpayers should always know that taxes be paid and how they should be paid. This is not a problem in many countries with stable governments. In many countries around the world, there is always a date on which the tax must be paid.
6. Neutrality if volunteer work of the special tax, its effect should not be such as to affect the decision of a person must pursue a particular activity. However, in some special cases, which is required for some activities or products are often designed to discourage consumption and production of certain goods and services such as snuff, alcohol, and so on.
Although the objectives or purpose of any tax reform is not necessarily formal or even clearly stated that in such cases are generally similar to these. As reforms continue, efforts should be made to improve the systems.
