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[QUOTE="yaksalfem, post: 323889, member: 92937"] Canon of simplicity Every tax must be simple and intelligible to the people so that the taxpayer is able to calculate it without taking the help of tax consultants. A complex as well as a complicated tax is bound to yield undesirable side-effects. It may encourage taxpayers to evade taxes if the tax system is found to be complicated. A complicated tax system is expensive in the sense that even the most honest educated taxpayers will have to seek advice of tax consultants. Ultimately, such a tax system has the potentiality of breeding corruption in the society. (h) Canon of diversity Taxation must be dynamic. This means that a country’s tax structure ought to be dynamic and diverse in nature rather than being narrow and rigid. Diversification in a tax structure will demand involvement of the majority of the sectors of the population and must evolve [/QUOTE]
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