A good system of taxation must satisfy certain general principles. Adam Smith laid down the following four canons of taxation. (1) Canon Of Equality: This is the. To prepare for a lecture I'm giving on taxation later this month, I've been reviewing Adam Smith's well-known “canons of taxation” along with. In other words, the characteristics or qualities which a good tax should possess are described as canons of taxation. It must be noted that canons refer to the.


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Canon canons of taxation desirability expediency This canon of desirability proposes that a tax system should be so desirable that its implementation will not face reluctance, criticisms, riots and evasion.

The tax must have justification for maximum acceptability by the people Governments around the world find it canons of taxation to incorporate all the nine canons of taxation. However, majority of the governments incorporate some of the main canons of taxation in their tax systems.

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Australian Tax Forum, Public Finance in Theory and Practice. The Economics of Welfare.

Canons of Taxation -

Library of Economics and Liberty [online]. Feel free to send us questions or topics on tax and investments in Kenya that you would wish to be covered in this Website.

Disclaimer This post is for general overview and guidance and does not in any way amount to professional advice.

Kenyan taxpayers must always rely on the canons of taxation current information from KRA.

Canons of Taxation: Meaning, Types and Characteristics

Tax industry in Kenya is very dynamic. Specializes in Tax and Investments.


It will enable the tax payer to manage his income and expenditure. The Government will also be benefited by this principle.

Canons of Taxation and Equity in Taxation – Explained!

According to this canon of taxation, every tax should be levied in such a manner and at such a time that it affords to the maximum of convenience to the tax payer. According to Adam Smith, a good taxation policy must be convenient for the tax payer. The reason is that the tax payer for goes his canons of taxation power and makes a sacrifice at the time of payment of tax hence the Government should see that the tax payer suffers no inconvenience.

For example, in an agricultural country, tax should be collected only after the harvesting has been done. This principle suggests canons of taxation the cost of collecting tax should be the minimum so that a major part of collections may bring to the Government treasury.

Canons of Taxation and Equity in Taxation – Explained!

If the administration expenses in the collection of taxes consume a major portion of canons of taxation revenue collected; it cannot be said to be a good tax system. Besides the above four canons of taxation suggested by Adam Smith, some other economists have canons of taxation propounded certain other canons of taxation.

These canons of taxation are observed, of course, not always faithfully, by modern governments. Hence these are basic and classic canons of taxation.

We now present other canons of taxation: According to a well-known classical economist in the field of public finance, Charles F. Bastable, taxes must be productive or cost-effective.