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Notes on both sections of Economics of Tax to cover section C of exam, Study notes of Business Taxation and Tax Management

It covering both theoretical and practical aspects of tax systems. It begins with an introduction to taxation, discussing its role in society, objectives (revenue generation, redistribution, economic regulation), and classifications (direct vs. indirect taxes). The notes explore Adam Smith’s Canons of Taxation (efficiency, certainty, convenience, and equity) and their application in modern tax systems, including the Mirrlees Review, which critiques the UK tax system and proposes reforms for neutrality, progressivity, and simplicity. The document also covers the UK tax law-setting process, the role of the Office for Budget Responsibility (OBR), and the influence of the EU, voters, and taxpayers on tax policy. It concludes with discussions on tax avoidance, the General Anti-Abuse Rule (GAAR), and the moral implications of tax planning. The material is designed to help students understand the economic principles behind taxation and the complexities of tax policy in the UK.

Typology: Study notes

2024/2025

Available from 03/06/2025

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Download Notes on both sections of Economics of Tax to cover section C of exam and more Study notes Business Taxation and Tax Management in PDF only on Docsity!

3/6/25, 3:16 PM about:blank Economics of Tax - Lecture notes 5/6 Int jon nomi Taxation + Part of price of living in organised society + Tax system — Represents social, political and economic needs at that point in time — Recently used as a way of repairing the economy following 2008 crash and locally the drop in oil price — Ifneeds change then tax system must change — No tax system perfect Importance of tax system + Tax system — central role in modern economies + Accounts for a substantial portion of national income - 30% of income + Many countries seeking to address fiscal deficits by raising money through tax — Importance of structure of tax systems paramount Main objectives ~ Taxation + To raise revenue ~ for government spending + To redistribute income and wealth - equality + Toact as an economic regulator — regulating cigarettes/alcohol + To encourage harmonisation — industries and policies (green taxes) Classification of taxes Who bears burden of taxation (Incidence of tax) — Income — Income tax — individual — Corporation tax — company/shareholders/employees — Wealth/ Capital — Capital gains tax - — Inheritance tax — Consumption — VAT Direct/Indirect + Direct — Levied directly on person intended to pay tax + Income Tax * Corporation tax + Capital gains tax + Inheritance tax + Indirect — Borne by person other than person tax collected from + VAT 4/15