TAX EVASION.pdf - Christian Service University College

2.3 Various Ways of Taxing
2.3.1 Income Tax:
Income tax assessments are computed for a tax year and are based on the taxpayer’s
aggregate income for that year from all sources, employment, investment and business
ignoring any income which is exempt from income tax. The computation takes into
account any tax-deductible payments made by the taxpayer’s during the year and the
taxpayer’s entitlement to reliefs and capital allowances.
2.3.2 Corporate Tax:
A tax levied by various jurisdictions on the profits made by company or association.
2.3.3Excise:
Is a type of tax charged on goods produced within the country as opposed to import
duties, charged on imported goods.
2.3.4 Property Tax:
Capital tax on property imposed by municipalities based on the estimated value of
property.
2.3.5 Import duties:
These are tax on goods upon importation. When a ship arrives in a port a custom officer
inspects the contents and charges a tax according to the tariff formula.
2.3.6Employment
Government expenditure undertaken through tax revenue generates employment for
millions of people in the economy. Many people are employed in the public sector, and
other organs of the government because of the administration of the tax system. The
government is the largest employer.