QuestionMay 29, 2025

Test II; Short Answer 1. Write definition of Tax and Taxation 2. Write the common characteristics of taxation?

Test II; Short Answer 1. Write definition of Tax and Taxation 2. Write the common characteristics of taxation?
Test II; Short Answer
1. Write definition of Tax and Taxation
2. Write the common characteristics of taxation?

Solution
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Answer

Tax is a compulsory charge by the government; Taxation is the process of levying taxes. Common characteristics include being compulsory, legal, non-penal, revenue-generating, and serving public purposes. Explanation 1. Define Tax Tax is a compulsory financial charge imposed by a government on individuals or entities to fund public expenditures. 2. Define Taxation Taxation is the process by which governments levy taxes on individuals or businesses to generate revenue for public services and infrastructure. 3. List Common Characteristics of Taxation 1. Compulsory: Mandatory payment without direct benefit. 2. Legal Authority: Imposed by law. 3. Non-penal: Not a punishment but a financial obligation. 4. Revenue Generation: Primary source of government income. 5. Public Purpose: Used for societal benefits like infrastructure, education, etc.

Explanation

1. Define Tax<br /> Tax is a compulsory financial charge imposed by a government on individuals or entities to fund public expenditures.<br /><br />2. Define Taxation<br /> Taxation is the process by which governments levy taxes on individuals or businesses to generate revenue for public services and infrastructure.<br /><br />3. List Common Characteristics of Taxation<br /> 1. Compulsory: Mandatory payment without direct benefit.<br /> 2. Legal Authority: Imposed by law.<br /> 3. Non-penal: Not a punishment but a financial obligation.<br /> 4. Revenue Generation: Primary source of government income.<br /> 5. Public Purpose: Used for societal benefits like infrastructure, education, etc.
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