JUSTIFICATION OF TAX · CORPORATE TAX PLANNING

·         JUSTIFICATION OF TAX

·         CORPORATE TAX PLANNING

·         MEANING OF TAX

·         TAX IS A COMPULSORY PAYMENT TO THE GOVT AS PER THE RULES AND LAWS ENACTED BY IT. THE TAX PAYER CAN NOT EXPECT ANY SERVICE OR BENEFIT FROM THE GOVT IN RETURN. IF A PERSON FAILS TO PAY A TAX,HE IS LIABLE TO BE PENALIZED.

·         ANATOL MURAD,” TAX IS COMPULSORY PAYMENT MADE BY A PERSON OR FIRM TO A GOVT WITHOUT REFERENCE TO ANY BENEFIT THE PAYER FROM THE GOVT.

·         JUSTIFICATION OF TAX

·         OBJECTIVE OF TAX

1.     TO GET INCOME

2.     TO REGULATE AND CONTROL

3.     ALLOCATION OF RESOURCES

4.     REDUCTION IN INEQUALITY

5.     ECONOMIC DEVELOPMENT

·         ELEMENTS OF TAX

1.     COMPULSORY PAYMENT

2.     IMPOSED BY GOVT

3.     INVOLVEMENT OF SACRIFICE

4.     SOCIAL WELFARE

5.     THE BENEFIT IS NOT THE CONDITION

6.     NO RELATION WITH THE COST OF SERVICE

·         TAX PLANNING FOR UNDERTAKING LOCATED IN BACKWARD AREA

·         CORPORATE TAX PLANNING