Qualities of a good tax administration or system

[PICKFORD]

In spite of the fact that feelings on what establishes a tax system framework contrast, there is general arrangement that these five fundamental conditions ought to be boosted furthest degree conceivable. A decent tax system framework should meet five essential rules: reasonableness, ampleness, straightforwardness,
straightforwardness, and regulatory simplicity.

1. Reasonableness, or value, involves everybody paying their reasonable portion of assessments. There are two sorts of value ideas: even value and vertical value. Even value, suggests that citizens in comparable monetary circumstances should pay comparable expense sums. Vertical value, then again, is similarly significant. Vertical value infers that good citizens should pay essentially similar extent of their pay in charges as the individuals who are less wealthy. Vertical value is accomplished by arranging charges as backward, relative, or moderate.

2. Sufficiency implies that charges should create sufficient income to meet society's essential requirements. An expense framework breezes through the ampleness assessment assuming it produces sufficient income to fulfill the need for public administrations, in the event that income development every year is adequate to subsidize the yearly expansion in help costs, and in the event that enough monetary movement of the kind is being burdened to keep rates moderately low.

3. Effortlessness implies that citizens can stay away from a knot of assessments, structures, and documenting cutoff times. A more straightforward duty framework assists citizens with understanding the framework and brings down consistence costs.

4. Straightforwardness implies that citizens and policymakers can undoubtedly observe data about the duty framework and how charge dollars are spent. A straightforward expense framework permits us to see who is being burdened, the amount they are paying, and what the cash is being utilized for. We can likewise gain who makes good on the expense and who benefits from charge exclusions, allowances, and credits.

5. Regulatory effortlessness indicates that the assessment framework isn't excessively confounded or costly for either citizens or expense gatherers. The standards are notable and genuinely straightforward; the structures are not excessively confounded; the state can figure out whether charges are paid on schedule and accurately; and the state can direct reviews reasonably and productively. The expense of gathering a duty should be negligible in contrast with the sum gathered.

 

[Jasz]

Tax administration is important in any society. A good tax administration plays a key role in economic development of a country. Some of the qualities that characterize a good tax administration are described below:




Tax administration and management often fails to deliver what is expected of it. It does not generate sufficient revenue for the state, it is not efficient and many times it is not seen as equitable or fair to taxpayers. This post argues that a good tax administration must possess three qualities: efficiency, equity and transparency.


Efficient administration implies that the tax burden should be low for both the taxpayer and the State; collection costs should be low, especially in relation to administrative costs; revenues are well collected on time, with few loopholes and few opportunities for corruption; rules and procedures are “user friendly” to taxpayers; compliance with tax rules should be high; penalty systems should be adequate to ensure compliance with tax laws; rulings should be quick in order to strengthen investors’ certainty and reduce disputes between taxpayers and the tax authorities; resources (financial, human) allocated to administration units must be adequate to their job requirements in order to reduce corruption.