Taxation - 2 -fin Flashcards
Economic role of the state
regulatory role
The task of the state is to enforce rules and regulation under law and control
Economic role of the state
Allocation role
The task of the state is to provide and distribute goods and services
Economic role of the state
Redistribution role
The task of the state is to redistribute the budgetary in a fair and legal way of prosperity
Economic role of the state
Stabilizing role
The task of the state is to provide stable economic conditions
Public needs
The demand of the society on goods and services
Public tasks
All the activities to satisfy the public needs i.e: social care, street lighting, health service
Public finance
The sum of public revenues and public expenditures and all financial activites the state is doing for covering the public tasks
Public expenditures
All financial activities and money to meet the public tasks
The characteristics of tax
A type of government revenue
Used to finance public tasks
Tax collection is guaranteed by the State force
Definition of tax
The tax is a payment obligation based on legislation, which is implemented by the State or its empowerment, to a specified extent and time from natural person and legal entity
Main characteristics of tax
Mandatory
Based on the law
General financial service
Taxable entity (person)
Natural or legal person who is bound to pay taxes
Taxpayer
Natural or legal person (organization) who actually pays the tax
Objects of taxation
All the articles, rights, activites that the tax has to be paid after
Tax rate
The ratio at which a business or person is taxed
