ADVANCE TAXATION OVERVIEW

CLO 1: Develop insights into a good taxation system, different structures and types of taxes in Jamaica.
- Team assignment: 6
- Mid-term: 6
- Team project: 1
- Final exam: 4
- Total: 17
CLO 2 Critically appreciate the relevance of Income Tax Administration, including the duties and relationship of the TAAS with other Revenue Departments.
- Team assignment: 7
- Mid-term: 6
- Team project: 1
- Final exam: 8
- Total: 22
CLO 3: Gain an understanding of Taxation of Companies, Charities, Associations and other Businesses.
- Team assignment: 7
- Mid-term: 8
- Team project: 6
- Final exam: 8
- Total: 29
CLO 4: Display a keen understanding of International Agreements and the tax issues related to global operations.
- Team assignment: 6
- Team project: 10
- Total: 16
CLO 5: Develop a keen understanding of General Consumption Tax (GCT), its administration, computation and preparation of GCT Returns.
- Team assignment: 6
- Team project: 10
- Total: 16
Total Course points: 100

Inherent power of a sovereign state to impose financial burden on people and property.
Used to raise revenue for government expenses (Tax Digest, 2002).
Practice of collecting money from citizens based on earnings and property.
Supports government services (police, courts, military, roads) (Tax Law and Jurisprudence by Justice Vitug, 2000).

Coercive:
- Uncertainty in assessing tax liabilities
- Intimidation and force in collection
- Absence of taxpayer representation
- Taxes are not exchanged for anything
Contractual:
- Open exchange of tax revenue for services
- Standardized assessment and collection methods
- Taxpayer voice in policy-setting
- Semi-voluntary taxpayer compliance

Canon of Equity: Based on ability to pay (rich pay more).
Canon of Certainty: Clear guidelines on amount, timing, and method of payment.
Canon of Convenience: Convenient payment methods for taxpayers.
Canon of Economy: Tax collection costs should be lower than the collected amount.
Canon of Productivity: Tax system should generate adequate revenue for government needs.
Canon of Elasticity: Tax income should adapt to country's needs (increase/decrease).
Canon of Flexibility: Taxes can be adjusted to changing economic conditions.
Canon of Simplicity: Easy to understand and administer to avoid problems of interpretation and disputes.
Canon of Diversity: Taxes should come from several sources to avoid dependence on a single source.

Direct Taxes: Paid directly to the government by the taxpayer (income tax, property tax).
- Advantages: Equitable, economical, certain, elastic, productive, develops civic sense
- Disadvantages: Inconvenient, evadable, arbitrary.
Indirect Taxes: Paid by consumers through increased product prices (General Consumption Tax).
Tax Classification Based on Income
- **Regressive Tax:**Takes a higher percentage from low-income earners than high-income earners.
  - Merits: Reduces demand for unhealthy goods, choice/freedom.
  - Demerits: Poor have less money after tax, unemployment increases if taxes are too high, revenues reduced with decreased consumption.
- Progressive Tax: Takes a higher percentage from high-income earners.
  - Merits: Equitable (wealth distribution), productive (higher yield), economical (lower cost of collection).
  - Demerits: Tax evasion increased, discourages saving & investment, unstable due to yearly changes.
- Proportional Tax: Taxes all earners the same percentage.
  - Merits: Simple, encourages saving & investment, easy to calculate.
  - Demerits: Unequal, inelastic due to fixed rate, burden of taxation is high on the poor.