The Uk Tax System.
The UK taxation system relevant to the typical tax paying resident within the UK consists of Income tax, Corporation tax and Capital Gains tax. In the past tax payers have tried to ‘evade’ paying tax, with some ludicrous plans to keep their own personal taxes to a minimum, if not have a tax liability in the negative. This is partly why the UK Government has had to implement tax laws to maintain and clarify the structure of the taxation system within its policies. The system relies on a number of references, these are known as ‘sources of tax law’. These keep control of the taxation system and give a framework which users can adhere to. There are three different types of sources for tax law. Initially primary sources, such as Statute law, Case law and European Court of Justice decisions. Secondary sources; extra-statutory concessions, informal concessions, statements of practice and statutory instruments. These secondary sources are all produced by the HMRC (Her Majesty’s Revenue and Customs). Finally further sources,mainly European Union treaties, regulations and directives. Within this essay I will evaluate the relevance of each source, consider whether they are subjected to parliamentary scrutiny, if so whether there has been significant deliberation over them. I will also consider whether the sources have the force of law.
Statutes
The role of statutes within taxation is fundamental in how they affect the taxation system. The most countries including the UK, statutes/laws on tax are definite, and must be followed. They give structure to the taxation practices within their accounting records, to minimise tax evasion. If the laws are broken, the law breaker could be fined or even go to jail. A famous example of a tax evader is Wesley Snipes the actor who got sent to jail for trying to get out of paying $41 million in taxes. (US Attorney Robert O'Neill of Florida) wrote in court documents: “This case cries out for the statutory maximum term of imprisonment,
Statutes
The role of statutes within taxation is fundamental in how they affect the taxation system. The most countries including the UK, statutes/laws on tax are definite, and must be followed. They give structure to the taxation practices within their accounting records, to minimise tax evasion. If the laws are broken, the law breaker could be fined or even go to jail. A famous example of a tax evader is Wesley Snipes the actor who got sent to jail for trying to get out of paying $41 million in taxes. (US Attorney Robert O'Neill of Florida) wrote in court documents: “This case cries out for the statutory maximum term of imprisonment,
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