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
