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PRINCIPLES OF TAXATION
1 Tax is a compulsory levy on individuals and companies by the state to meet the expenses of the government 2 Taxes are levied in almost every country of the world prmarily to raise revenue(money that a business or organization receives over a period of time, especially from selling goods or services) for government expenditures 3 The 18th-century philosopher Adam Smith attempted to systematize the rules that should govern a national system oftaxation 4.In his books he set down three general canons. 5.1). The subjects of every state ought to contribute towards the support of the government in proportion to their respective abilities that is in proportion to the revenue which they respectively enjoy under the protection of the state 6.2) The tax, which each individual is bound to pay, ought to be certain and not arbitrary 7 The time of payment, the manner of payment, the quantity to be paid ought all to be clear and plain to the contributor and to every other person Every tax ought to be levied at the time or in the manner in which it is most likely to be convenient for the contributor to pay it principles 9. Although they need to be reinterpreted from time to time these especially the first retain remarkable relevance. as the ability 10. Taxes should be based on the individual's ability to pay know to pay principle and the benefit principle.