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Characteristics of the Tax System

The better way to understand taxation's meaning is by examining taxation's characteristics.

1. An Obligatory Payment

The payment of taxes is voluntary for certain people.

Before any individual is obligated to make tax payments, they must satisfy various prerequisite conditions.

Only those individuals who are considered to be "taxable persons" are required to make tax payments.

Taxpayers who fail to pay taxes are liable to fines since they are breaking the income tax law.




只有那些被认为是 "应纳税人士" 的个人才需要缴税。


2. Money Raised for Government Purposes

The requirements that must be met by the government to properly serve the public are met using the funds provided by taxpayers.

It is the responsibility of the government to invest money in any industry or any part of the country so long as it is doing what is in the public's best interest.




3. It is Not Constitute Payment for Service Rendered

Taxation is not a payment in exchange for government-provided services.

To put it another way, this is not like a typical commercial transaction in which one party offers services to the buyer, who then must pay for the privilege of receiving those services.

The fact that we are not receiving the level of services from the government that we anticipated does not mean that we can simply avoid paying our taxes.





4. Not a Punishments/Penalties

Taxes should not be considered penalties.

Consequently, we cannot claim to be good citizens, and the government should not tax us.




5. The Assessments Are Not Arbitrary

Tax liability is not determined by luck or at random.

It is decided by the Inland Revenue Board (IRB) precise procedural algorithms.




6. The Assessment can be Contestable

The fact that it is possible to contest the amount of tax that is being charged is something that taxpayers need to be aware of.

However, this must be done through the appropriate channels.

An appeal can be made within 30 days from the date that a Notice of Assessment is received from IRB by submitting Form Q.

If the responsible government authorities are satisfied with the explanation and proof provided by the taxpayer, then the total amount of taxes will be decreased.






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