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Monthly Archives: February 2010

Accountancy – Taxation

Taxation first known systems were around 2800 BC – 3k BC in traditional Egypt. Granary invoices on papyrus and limestone flakes are other records that were discovered. The bible also describes early taxation, these verses in Genesis states “But when the crop comes in, give a 5th of it to Pharaoh. The other four-fifths you’ll keep as seed for the fields and as food for yourselves and your homes and your children.” This was Joseph telling all of the folks of traditional Egypt how they should divide their crops, he states a portion should be supplied to the Pharaoh making a twenty p.c. slice of the crop Tax.

Taxation and Its Forms before flat banking in Financial Economics, “Seigniorage” was a critical type of taxation, this was tax on the making of money. There are plenty of other kinds of Taxation, some of the more outmoded ones include : Tax Farming – the theory of Tax Farming is to allot the responsibility of Tax income collection to groups or personal voters. Tithe – Is one tenth of somebody’s rural produce or takings ( this is a tax like payment ). However this is paid to the church making it also definitive in technical terms to be called Tax ).

This technique isn’t to be confused Tithe of the modern age which is voluntary, though on occasions some churches have sought it with force. Scutage – The army service pay this in lieu. In practice this functions as a Tax but, alternately being a Tax as such it is speaking strictly the communication of a duty of non-tax. Carucage – In Britain Danegold got replaced by Carucage Tax. Danegold – This was initially land tax from the medieval times, this tax was raised as a pay off to raiding Danes and also at later on Danegold was employed to pay for army expenditures. Tallage – Tallage is a tax on feudal family. Accountancy Taxation – tax levels and Economics The Tax Rate is Taxes levied as a p.c.. When talking about tax levels it is vital to distinguish the difference between the effective ( average ) rate and the questionable rate.

The questionable rate is the rate that you have to pay on the next Pound of earnings that you earn while the Effective rate is the division of the total tax paid by the amount the tax is paid on. Taxation transfers wealth from firms or homes to the governing body ( this is in Commercial Terms ). Microeconomics notes the complications of taxation and it states how best to Tax, it’s a crucial subject in Microeconomics. Taxation is a transfer of wealth, after all this transfer of wealth is virtually never an easy transfer.


Tax Benefit Exchange