Tax system definition

Essay by nicolelinUniversity, Bachelor's September 2007

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New Zealand tax systemTax system definitionA tax system is a system that gains and assesses taxes legally by government. There are a variety of explanations regarding to its definition, purposes and functions. It is a "charge, especially a pecuniary burden which is imposed by authority", "A charge or burden laid upon persons or property for the support of a government", "A sum imposed or levied upon the members of a society to defray its expenses"(Brainy 2007). As I concern various definitions of tax system represent some key contents of it. It is a legally charge, that is, a tax collection is an authority auction under government, members in the society should observes it. It is subject to person or property, in other world, tax occurs upon them when people expense and income, or property value changing. Thus, a tax system is a governmental assessment (charge) upon property value, transactions (transfers and sales), licenses granting a right, and/or income (Gerald and Kathleen, 2005).

New Zealand tax systemNew Zealand is a country that enacted a tax law for long period, according to the government information, it has increasingly become complex since the first income tax issued in 1891 ( New Zealand tax system imposes the economic costs with three components, which are compliance costs, administration costs, and influence the behaviors of taxpayers. According to the government, "Taxation imposes economic costs on society arising from the costs of compliance and administration, and the effects on taxpayer behaviour" (www.beehive.govt). These three components represent the operating costs of New Zealand tax system.

Compliance costsJeff (200?) indicates that the compliance costs of taxation are consisting of both economic and non-economic costs. In this study, the economic costs are these that monetary and time expense in dealing with the requirements of the tax authorities, and it...