Taxation is the practice of the government of levying
taxes from individuals, institutions or groups. It is a compulsory transfer
of money from the owner to the government. These are paid in support of the
government.
Purpose of Taxation
Funds provided by taxation have been used to
carry out the functions such as:
- Military defense
- Enforcement of law and public order
- Protection of property
- Redistribution of wealth
- Economic infrastructure - roads, legal tender, enforcement of
contracts, etc.,
- Public works
- The operation of government itself
- Education systems
- Healthcare systems
- Pensions for the elderly
- Unemployment benefits
- Energy, water and waste management systems
- Public transportation
Purpose of Outsourcing Taxation Services
These days taxations
services are widely outsourced in order to :
- Minimize operating cost
- Maximize efficiency and profit
