The Canon of Convenience- It means that

  • The literal meaning of this principle is that tax should be levied in such a manner that it should be convenient to all tax payers​.
  • It should not be complicated in their operation as to cause needless inconvenience and hardship to the subjects.
  • It helps to ensure compliance.

The Canon of Economy – It means that

  • Tax system should have economical object​.
  •  the cost of tax collection should be minimum​.
  • Government must levy only the minimum tax which is necessary for the national growth​.

The Canon of Certainty- It means that

  • All the taxation policies ought to be certain and clear​.
  • when the tax is to be paid, how it is to be paid and how the amount to be paid is to be determined ​.
  • The taxation policies should be precise ​.
  • The tax system should be formed in such way that all persons should pay the taxes according to their capacity. ​
  • The parties should have equal responsibility. There should be equal tax burden on all persons.
  • Principles of social Justice should be followed.
  • Equity refers to both horizontal and vertical equity- Horizontal equity – taxpayers with equal abilities to pay should pay the same amount of tax​, Vertical equity – taxpayers with a greater ability to pay should pay more tax. ​
  • Higher income group should contribute more than lower income group​.

Main Characteristics of Taxes

  1. It is compulsory
  2. It is a form of contribution.
  3. It leads to public benefit.
  4. It has no direct benefit.
  5. Government has the power to levy.
  6. It has not the cost of benefit.
  7. It leads to economic growth and public welfare.

Here is notes on the introduction of taxation law-

An introduction to Taxation law.

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