A taxpayer is a person or organization (such as a company ) subject to pay a tax . Modern taxpayers may have an identification number , a reference number issued by a government to citizens or firms .
111-401: A tax is a mandatory financial charge or levy imposed on a taxpayer (an individual or legal entity ) by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities . Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at
222-433: A pay-as-you-earn basis, with corrections made after the end of the tax year . These corrections take one of two forms: Income-tax systems often make deductions available that reduce the total tax liability by reducing total taxable income. They may allow losses from one type of income to count against another – for example, a loss on the stock market may be deducted against taxes paid on wages. Other tax systems may isolate
333-423: A plea bargain that may reduce the impact from that which would be incurred from pleading guilty without attending court. If no agreement is reached, and the prosecutor feels it is worth his time to charge the motorist, both motorist and officer, or their respective representatives, formally attempt to prove their case before the judge, who then decides the matter. In some states and for criminal traffic violations,
444-426: A certain area ( social engineering ). For example, a high excise is used to discourage alcohol consumption, relative to other goods. This may be combined with hypothecation if the proceeds are then used to pay for the costs of treating illness caused by alcohol use disorder . Similar taxes may exist on tobacco , pornography , marijuana etc., and they may be collectively referred to as " sin taxes ". A carbon tax
555-446: A commodity is sold to its final consumer. Retail organizations contend that such taxes discourage retail sales. The question of whether they are generally progressive or regressive is a subject of much current debate. People with higher incomes spend a lower proportion of them, so a flat-rate sales tax will tend to be regressive. It is therefore common to exempt food, utilities, and other necessities from sales taxes, since poor people spend
666-442: A community service order and additional fees. In Canada , most traffic laws are made at the provincial level. However, some serious violations are criminal offences, contrary to the federal Criminal Code . Both levels of government may deal with different aspects of the same misconduct. For example, drinking and driving may be a criminal offence of driving while impaired, or driving with a blood alcohol level greater than .08. At
777-412: A company is split between two or more individuals. A partnership is not a legal entity that is separate from the owners and therefore the partnership itself does not pay taxes. The classification depends on given country and may vary. Taxpayers' money help to pay for the items on the federal budget. The gap between revenue (money collected via taxes) and spending is known as the budget deficit. The money
888-459: A copy of Part A, which includes the facts of the matter i.e. observations and contemporaneous notes, including description of vehicle, and whether or not any photographs of an offending vehicle have been taken. Quite often, an officer will indicate that they have taken only (1) photograph of a vehicle then, when a matter is defended in court and the prosecution provide a brief of evidence with anything up to 4-5 extra photographs this can lead to some of
999-404: A defendant to retain a lawyer to discuss legal options, identify important defenses, and determine a defense strategy without hiring the lawyer to provide in-court representation. The motorist may be given the opportunity to schedule a hearing for a time at which the subpoenaed ticketing officer is unable to attend. If the officer or representative fails to attend the trial for a civil infraction,
1110-468: A definition and system of classification of internal taxes, generally followed below. In addition, many countries impose taxes ( tariffs ) on the import of goods. Many jurisdictions tax the income of individuals and of business entities , including corporations . Generally, the authorities impose a tax on net profits from a business , on net gains, and on other income. Computation of income subject to tax may be determined under accounting principles used in
1221-558: A driver's licence will be suspended for 30 days. Surrendering a licence to the Ministry of Transportation is mandatory at this stage; failure to surrender the licence may result in a suspension/loss for up to two years. In the Republic of Ireland , a traffic ticket (which is mailed out to the driver) is in the form of a notice alleging that some crime – traffic offences are all criminal offences – has been committed, but stating that if
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#17327658665411332-406: A higher proportion of their incomes on these commodities, so such exemptions make the tax more progressive. This is the classic "You pay for what you spend" tax, as only those who spend money on non-exempt (i.e. luxury) items pay the tax. A small number of U.S. states rely entirely on sales taxes for state revenue, as those states do not levy a state income tax. Such states tend to have a moderate to
1443-640: A higher tax rate. Historically, in many countries, a contract needs to have a stamp affixed to make it valid. The charge for the stamp is either a fixed amount or a percentage of the value of the transaction. In most countries, the stamp has been abolished but stamp duty remains. Stamp duty is levied in the UK on the purchase of shares and securities, the issue of bearer instruments, and certain partnership transactions. Its modern derivatives, stamp duty reserve tax and stamp duty land tax , are respectively charged on transactions involving securities and land. Stamp duty has
1554-496: A large amount of tourism or inter-state travel that occurs within their borders, allowing the state to benefit from taxes from people the state would otherwise not tax. In this way, the state is able to reduce the tax burden on its citizens. The U.S. states that do not levy a state income tax are Alaska, Tennessee, Florida, Nevada, South Dakota, Texas, Washington state, and Wyoming. Additionally, New Hampshire and Tennessee levy state income taxes only on dividends and interest income. Of
1665-404: A motorist is given the option to mail into the local court or the court for the jurisdiction in which the violation is alleged—a plea of guilty, not guilty or nolo contendere within a certain time frame (usually ten to fifteen days, although courts generally provide leniency in this regard). Additionally, the motorist can request a mitigation hearing, which acknowledges that the driver is guilty of
1776-400: A moving violation, but is requesting a hearing with a judge to reduce the fines associated with the ticket. If the motorist pleads guilty, the outcome is equivalent to a conviction after the hearing. Upon conviction, the motorist is generally fined a monetary amount and, for moving violations, is additionally assessed a penalty under each state's point system . If a motorist is convicted of
1887-468: A number of fixed, and mobile, speed cameras and red light cameras across the State. The State Debt Recovery Office (SDRO) manages the processing and issuing of traffic tickets detected and issued by these devices. These tickets are deemed to be 'owner onus' tickets with the vehicles registered owner deemed liable unless they nominate another driver via statutory declaration. These are generally issued 'on
1998-553: A particular amount. Such upper or lower limits may apply for retirement but not for health-care components of the tax. Some have argued that such taxes on wages are a form of "forced savings" and not really a tax, while others point to redistribution through such systems between generations (from newer cohorts to older cohorts) and across income levels (from higher income levels to lower income-levels) which suggests that such programs are really taxed and spending programs. Unemployment and similar taxes are often imposed on employers based on
2109-473: A payment of a certain amount is made to the Garda Síochána within 28 days, or the amount increased by 50% is paid within 56 days, the driver will not be prosecuted for the alleged offence. Some tickets carry penalty points as well as the fine. Most of Scandinavia determines some traffic fines based on income. For example, Finland's system for calculating fines starts with an estimate of
2220-625: A result of market forces . Certain countries (usually small in size or population, which results in a smaller infrastructure and social expenditure) function as tax havens by imposing minimal taxes on the personal income of individuals and corporate income. These tax havens attract capital from abroad (particularly from larger economies) while resulting in loss of tax revenues within other non-haven countries (through base erosion and profit shifting ). Legal and economic definitions of taxes differ, such that many transfers to governments are not considered taxes by economists. For example, some transfers to
2331-524: A single-rate form of taxation regardless of ability to pay (the Community Charge , but more popularly referred to as the Poll Tax), led to widespread refusal to pay and to incidents of civil unrest, known colloquially as the ' Poll Tax Riots '. Some types of taxes have been proposed but not actually adopted in any major jurisdiction. These include: An ad valorem tax is one where the tax base
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#17327658665412442-512: A specific source), provides false information to the IRS about business income or expenses, deliberately underpays taxes owed or substantially understates taxes (by stating a tax amount on return which is less than the amount owed for the income reported). Tax evasion differs from tax avoidance , which is the use of legal methods to modify an individual's financial situation to lower the amount of income tax owed. Traffic ticket A traffic ticket
2553-437: A tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level. The tax may be levied on " natural " or " legal persons. " A value-added tax (VAT), also known as Goods and Services Tax (GST), Single Business Tax, or Turnover Tax in some countries, applies the equivalent of a sales tax to every operation that creates value. To give an example, sheet steel
2664-441: A tax on an individual's income and corporate income . Countries or sub-units often also impose wealth taxes , inheritance taxes , gift taxes , property taxes , sales taxes , use taxes , environmental taxes , payroll taxes , duties , or tariffs . It is also possible to levy a tax on tax, as with a gross receipts tax . In economic terms ( circular flow of income ), taxation transfers wealth from households or businesses to
2775-546: A total of about $ 400 or $ 500. In 2002, a Nokia executive was fined the equivalent of $ 103,000 for driving at 75 km/h (47 mph) in a 50 km/h (31 mph) zone on his motorcycle. Estonia (across the Baltic from Scandinavia) is experimenting with a "time out" in lieu of fines: the motorist waits at the side of the road for 45 minutes or an hour. In the United States , most traffic laws are codified in
2886-414: A traffic infraction through a written statement instead of appearing in court. For example, California's Vehicle Code Section 40902 permits individuals to obtain a trial by written declaration instead of making an in-court appearance. Each state's Department of Motor Vehicles or Bureau of Motor Vehicles maintains a database of motorists, including their convicted traffic violations. Upon being ticketed,
2997-460: A traffic ticket constitutes a notice that a penalty, such as a fine or accumulation of “ points ”, has been or will be assessed against the driver or owner of a vehicle; failure to pay generally leads to prosecution or to civil recovery proceedings for the fine. In others, the ticket constitutes only a citation and summons to appear at traffic court , with a determination of guilt to be made only in court. In Australia , traffic laws are made at
3108-637: A variety of state, county and municipal laws or ordinances, with most minor violations classified as infractions , civil charges or criminal charges . The classification of the charge depends on the violation itself as well as the jurisdiction, with infractions, civil charges and criminal charges relating to different standards of proof, trial rules and punishments. What constitutes a "minor violation" or infraction varies, examples include non-moving violations, defective or improper vehicle equipment, seat belt and child-restraint safety violations, and insufficient proof of license, insurance or registration. A trend in
3219-556: A violation in a state other than the state in which the motorist is registered, information about the ticket is relayed in accord with state policy and agreements between the two states, including the Non-Resident Violator Compact . If the ticket information is not abstracted to the state in which the motorist is licensed, then the record of the conviction remains local to the state where the violation took place. The practice of ticket fixing by police officers
3330-469: Is (7) days unless it is established that it was not served within (7) days. A due date for payment of Penalty Reminder notices under this Act is (21) days after it is served. Generally from the date of an offence approximately (28) days is given, after which time of the due date they will then have approximately an additional 21 days in which to take action, and finalise the matter. This includes (7) to allow for service, and (14) days for action to be taken. If
3441-480: Is a fine , and this is ordinarily a fixed amount of money, instead of being an amount of money determined based on the facts of each individual case. If the motorist wishes to contest a traffic infraction, a hearing can be set by the court upon proper request. The hearings are before a magistrate or judge depending on the state or city. Hearing dates may potentially be adjourned, and witnesses or police officers may be subpoenaed to appear in court. At any point after
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3552-493: Is a per unit tax, where the tax base is the quantity of something, regardless of its price. An excise tax is an example. Consumption tax refers to any tax on non-investment spending and can be implemented by means of a sales tax, consumer value-added tax, or by modifying an income tax to allow for unlimited deductions for investment or savings. This includes natural resources consumption tax , greenhouse gas tax (i.e. carbon tax ), "sulfuric tax", and others. The stated purpose
3663-430: Is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate. However, this distinction does not apply in other jurisdictions; for example, if using this terminology UK inheritance tax would be an estate tax. An expatriation tax is a tax on individuals who renounce their citizenship or residence. The tax
3774-601: Is a full VAT. The province of Quebec collects the Quebec Sales Tax [QST] which is based on the GST with certain differences. Most businesses can claim back the GST, HST, and QST they pay, and so effectively it is the final consumer who pays the tax. An excise duty is an indirect tax imposed upon goods during the process of their manufacture, production or distribution, and is usually proportionate to their quantity or value. Excise duties were first introduced into England in
3885-441: Is a general tax levied periodically on residents who own personal property (personalty) within the jurisdiction. Vehicle and boat registration fees are subsets of this kind of tax. The tax is often designed with blanket coverage and large exceptions for things like food and clothing. Household goods are often exempt when kept or used within the household. Any otherwise non-exempt object can lose its exemption if regularly kept outside
3996-508: Is a legal entity that is separate from the owners for tax purposes. These major categories can be further divided in different subcategories. Individual taxpayers can be classified as either a citizen or an alien (an alien is a person who resides within the borders of a country and is not a national of that country). A citizen can further be classified as either a resident citizen or a non-resident citizen. Corporations can be classified into domestic, foreign and partnership. A foreign corporation
4107-419: Is a notice issued by a law enforcement official to a motorist or other road user, indicating that the user has violated traffic laws . Traffic tickets generally come in two forms, citing a moving violation , such as exceeding the speed limit , or a non-moving violation, such as a parking violation , with the ticket also being referred to as a parking citation , or parking ticket . In some jurisdictions,
4218-480: Is a recurring source of controversy in the United States. Police officers in many jurisdictions surreptitiously cancel tickets as a "professional courtesy" to the friends and family of other police officers. This practice is not legal in most jurisdictions, but enforcement is often lax, leading to periodic scandals. There are many competing claims as to the first speeding ticket ever issued depending whether
4329-596: Is a tax on the consumption of carbon-based non-renewable fuels, such as petrol, diesel-fuel, jet fuels, and natural gas. The object is to reduce the release of carbon into the atmosphere. In the United Kingdom, vehicle excise duty is an annual tax on vehicle ownership. An import or export tariff (also called customs duty or impost) is a charge for the movement of goods through a political border. Tariffs discourage trade , and they may be used by governments to protect domestic industries. A proportion of tariff revenues
4440-440: Is an ad valorem tax levy on the value of a property that the owner of the property is required to pay to a government in which the property is situated. Multiple jurisdictions may tax the same property. There are three general varieties of property: land, improvements to land (immovable human-made things, e.g. buildings), and personal property (movable things). Real estate or realty is the combination of land and improvements to
4551-455: Is believed to be the one given to Jussi Salonoja in Helsinki , Finland , in 2003. Salonoja, the 27-year-old heir to a company in the meat-industry, was fined 170,000 euros for driving 80 km/h in a 40 km/h zone. The uncommonly large fine was due to Finnish speeding tickets (when excess speed is considerable) being relative to the offender's last known income. Salonoja's speeding ticket
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4662-405: Is called tax evasion . Tax evasion is an illegal practice where a person, organization or corporation intentionally avoids paying his true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties. It's considered tax evasion if the taxpayer knowingly fails to report income or under-report income (claiming less income than you actually received from
4773-463: Is economically justified, as it will not deter production, distort market mechanisms or otherwise create deadweight losses the way other taxes do. When real estate is held by a higher government unit or some other entity not subject to taxation by the local government, the taxing authority may receive a payment in lieu of taxes to compensate it for some or all of the foregone tax revenues. In many jurisdictions (including many American states), there
4884-412: Is either resident foreign or non-resident foreign corporation. A resident foreign corporation is a foreign corporation engaged in trade or business in the country. A non-resident foreign corporation is a foreign corporation not engaged in trade or business within the country but deriving income from sources in the country. A partnership is a business structure where ownership and management responsibility of
4995-495: Is generally a gain on sale of capital assets—that is, those assets not held for sale in the ordinary course of business. Capital assets include personal assets in many jurisdictions. Some jurisdictions provide preferential rates of tax or only partial taxation for capital gains. Some jurisdictions impose different rates or levels of capital-gains taxation based on the length of time the asset was held. Because tax rates are often much lower for capital gains than for ordinary income, there
5106-468: Is imported by a machine manufacturer. That manufacturer will pay the VAT on the purchase price, remitting that amount to the government. The manufacturer will then transform the steel into a machine, selling the machine for a higher price to a wholesale distributor. The manufacturer will collect the VAT on the higher price but will remit to the government only the excess related to the "value-added" (the price over
5217-416: Is imposed on the value of real estate or other personal property. Property taxes are usually imposed by local governments and charged on a recurring basis. Real estate taxes are often subject to fluctuation based upon a jurisdiction's assessment of the worth of a property based on its condition, location and market value, and/or changes to the amounts apportioned to various recipients of the tax. The sales tax
5328-762: Is most often used as a method for states and local governments to raise revenue. Purchases made at the retail level are assessed a percentage of the sales price of a particular item. Rates vary between jurisdictions and the type of item bought. Excise taxes are based on the quantity of an item and not on its value. User fees are taxes that are assessed on a wide variety of services, including airline tickets, rental cars, toll roads, utilities, hotel rooms, licenses, financial transactions and many others. So-called sin taxes are imposed on items like cigarettes and alcohol. Luxury taxes are imposed on certain items, such as expensive cars or jewelry. Taxpayers can be classified into two major categories – individual and corporation. A corporation
5439-425: Is moved to give the officer another chance to attend. In some provinces, officers are now paid time and a half to attend traffic proceedings. The court will also make provisions for the officer or the prosecutor to achieve a deal with the motorist, often in the form of a plea bargain . If no agreement is reached, both motorist and officer, or their respective representatives, formally attempt to prove their case before
5550-541: Is named FairTax . In Canada, the federal sales tax is called the Goods and Services Tax (GST) and now stands at 5%. The provinces of British Columbia, Saskatchewan, Manitoba, and Prince Edward Island also have a provincial sales tax [PST]. The provinces of Nova Scotia, New Brunswick, Newfoundland & Labrador, and Ontario have harmonized their provincial sales taxes with the GST—Harmonized Sales Tax [HST], and thus
5661-528: Is often hypothecated to pay the government to maintain a navy or border police. The classic ways of cheating a tariff are smuggling or declaring a false value of goods. Tax, tariff and trade rules in modern times are usually set together because of their common impact on industrial policy , investment policy , and agricultural policy . A trade bloc is a group of allied countries agreeing to minimize or eliminate tariffs against trade with each other, and possibly to impose protective tariffs on imports from outside
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#17327658665415772-482: Is often imposed based on a deemed disposition of all the individual's property. One example is the United States under the American Jobs Creation Act , where any individual who has a net worth of $ 2 million or an average income-tax liability of $ 127,000 who renounces his or her citizenship and leaves the country is automatically assumed to have done so for tax avoidance reasons and is subject to
5883-485: Is sometimes called a net wealth tax . Recurrent property taxes may be imposed on immovable property (real property) and on some classes of movable property. In addition, recurrent taxes may be imposed on the net wealth of individuals or corporations. Many jurisdictions impose inheritance tax on property at time of inheritance or gift tax at the time of gift transfer. Some jurisdictions impose taxes on financial or capital transactions . A property tax (or millage tax)
5994-439: Is the value of a good, service, or property. Sales taxes, tariffs, property taxes, inheritance taxes, and value-added taxes are different types of ad valorem tax. An ad valorem tax is typically imposed at the time of a transaction (sales tax or value-added tax (VAT)) but it may be imposed on an annual basis (property tax) or in connection with another significant event (inheritance tax or tariffs). In contrast to ad valorem taxation
6105-399: Is to reduce the environmental impact by repricing . Economists describe environmental impacts as negative externalities . As early as 1920, Arthur Pigou suggested a tax to deal with externalities (see also the section on Increased economic welfare below). The proper implementation of environmental taxes has been the subject of a long-lasting debate. An important feature of tax systems is
6216-411: Is widespread controversy and dispute about the proper definition of capital. Corporate tax refers to income tax, capital tax, net-worth tax, or other taxes imposed on corporations. Rates of tax and the taxable base for corporations may differ from those for individuals or for other taxable persons. Many countries provide publicly funded retirement or healthcare systems. In connection with these systems,
6327-471: The customs house , and revenue derived from that source is called excise revenue proper. The fundamental conception of the term is that of a tax on articles produced or manufactured in a country. In the taxation of such articles of luxury as spirits , beer, tobacco, and cigars, it has been the practice to place a certain duty on the importation of these articles (a customs duty ). Excises (or exemptions from them) are also used to modify consumption patterns of
6438-402: The elderly , unemployment benefits , transfer payments , subsidies and public transportation . Energy , water and waste management systems are also common public utilities . According to the proponents of the chartalist theory of money creation , taxes are not needed for government revenue, as long as the government in question is able to issue fiat money . According to this view,
6549-719: The 10 miles per hour speed limit. The fastest convicted speeder in the UK was Daniel Nicks, convicted of 175 mph (282 km/h) on a Honda Fireblade motorcycle in 2000. He received six weeks in jail and was banned from driving for two full years. The fastest UK speeder in a car was Timothy Brady, caught driving a 3.6-litre Porsche 911 Turbo at 172 mph (277 km/h) on the A420 in Oxfordshire in January 2007 and jailed for 10 weeks and banned from driving for 3 years. The most expensive speeding ticket ever given
6660-633: The Self-Enforcing Infringement Notice Scheme (SEINS). This scheme aims to minimize Court time for people who wish to plead guilty. The accused person can either elect to pay/part pay the infringement by way of a number of online means or through Australia Post , this can be found on the ticket. If the Accused person pays the infringement, they are deemed to have pleaded guilty and any demerit points will be deducted from their driver's licence. Matters only go to Court if
6771-494: The above states, only Alaska and New Hampshire do not levy a state sales tax. Additional information can be obtained at the Federation of Tax Administrators website. In the United States, there is a growing movement for the replacement of all federal payroll and income taxes (both corporate and personal) with a national retail sales tax and monthly tax rebate to households of citizens and legal resident aliens. The tax proposal
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#17327658665416882-548: The accused person elects to have the matter heard at Court. If the accused person wishes to plead not guilty, they fill the reverse side of Part C out and mail it to the State Debt Recovery Office (SDRO). Once this is done, a Court date is set for hearing before a Magistrate and the officer is notified. The officer creates a brief of evidence and provides this to the Court and the accused person, this contains
6993-462: The amount of spending money a Finn has for one day, and then divides that by two. The resulting number is considered a "reasonable" amount of spending money to deprive the offender of. Then, based on the severity of the crime, the system has rules for how many days the offender must go without that money. For example, driving about 15 mph over the speed limit results in a multiplier of 12 days. Most reckless drivers pay between $ 30 and $ 50 per day, for
7104-485: The arts , public works , distribution , data collection and dissemination , public insurance , and the operation of government itself. A government's ability to raise taxes is called its fiscal capacity . When expenditures exceed tax revenue , a government accumulates government debt . A portion of taxes may be used to service past debts. Governments also use taxes to fund welfare and public services . These services can include education systems , pensions for
7215-412: The bloc. A customs union has a common external tariff , and the participating countries share the revenues from tariffs on goods entering the customs union. In some societies, tariffs also could be imposed by local authorities on the movement of goods between regions (or via specific internal gateways). A notable example is the likin , which became an important revenue source for local governments in
7326-418: The claim goes by the first traffic violation or the first paper ticket ever issued. Great Britain may have the earliest claim with the first person to be convicted of speeding, Walter Arnold of East Peckham , Kent, who on 28 January 1896 was fined for speeding at 8 mph (13 km/h) in a 2 mph (3.2 km/h) zone. He was fined 1 shilling plus costs. A New York City cab driver named Jacob German
7437-404: The cost of the sheet steel). The wholesale distributor will then continue the process, charging the retail distributor the VAT on the entire price to the retailer, but remitting only the amount related to the distribution mark-up to the government. The last VAT amount is paid by the eventual retail customer who cannot recover any of the previously paid VAT. For a VAT and sales tax of identical rates,
7548-405: The country typically requires employers or employees to make compulsory payments. These payments are often computed by reference to wages or earnings from self-employment. Tax rates are generally fixed, but a different rate may be imposed on employers than on employees. Some systems provide an upper limit on earnings subject to the tax. A few systems provide that the tax is payable only on wages above
7659-402: The court for the town or city in which the violation took place to do so. If the motorist pleads not guilty, a trial date is set and both the motorist, or a lawyer/paralegal representing the motorist, and the ticketing officer, are required to attend. If the officer fails to attend, the court judge will often find in favour of the motorist and dismiss the charge, although sometimes the trial date
7770-422: The effect of discouraging speculative purchases of assets by decreasing liquidity. In the United States , transfer tax is often charged by the state or local government and (in the case of real property transfers) can be tied to the recording of the deed or other transfer documents. Some countries' governments will require a declaration of the taxpayers' balance sheet (assets and liabilities), and from that exact
7881-424: The elderly, unemployed, disabled and the poor. Examples include the earned income tax credit, child tax credits, unemployment insurance, food stamps, subsidized school meals, low-income housing assistance, energy assistance and more. The federal government spends its money in four major ways: direct payments, grants, contracts and insurance. Taxpayers may violate the law by not paying their mandatory taxes. This crime
7992-464: The estates of the deceased. In contrast with a tax on real estate (land and buildings), a land-value tax (or LVT) is levied only on the unimproved value of the land ("land" in this instance may mean either the economic term, i.e., all-natural resources, or the natural resources associated with specific areas of the Earth's surface: "lots" or "land parcels"). Proponents of the land-value tax argue that it
8103-457: The federal government borrows to cover the budget deficit is what creates the national debt. The government spends money for a variety of reasons: reduce inequality ("safety net" programs), provide public goods (fire, police, national defence), provide important public services like education and health (merit goods), debt interest payments, transport and military spending. The "safety net" programs are initiatives that give extra financial support to
8214-412: The fine is not actioned by the due date on the penalty reminder notice, an enforcement order will be issued and additional costs apply. If the enforcement order remains unpaid further enforcement action can follow, which may include suspension of the persons driver licence and/or vehicle registration, restrictions on conducting business with Transport for NSW, garnisheeing of wages, property seizure order or
8325-779: The form of income taxes and/or property taxes imposed on owners of real property (such as homes and vehicles), along with many other forms. People may pay taxes when they pay for goods and services which are taxed. The term "taxpayer" often refers to the workforce of a country which pays for government systems and projects through taxation. The taxpayers' money becomes part of the public funds , which comprise all money spent or invested by government to satisfy individual or collective needs or to generate future benefits. For tax purposes, business entities are also taxpayers, making their revenues and expenditures subject to taxation. The government levy income taxes on personal and business revenue and interest income. In addition to income taxes,
8436-429: The government can also mandate that employers subtract payroll taxes from their workers' paychecks each pay period, and then match the sums deducted. Capital gains taxes are those paid on any profits made from the sale of an asset and are usually applied to stock and bond transactions. Estate taxes are imposed on the transfer of property upon the death of the owner. Property tax, sometimes known as an ad valorem tax ,
8547-793: The government expenditure of taxes raised is often highly debated in politics and economics . Tax collection is performed by a government agency such as the Internal Revenue Service (IRS) in the United States , His Majesty's Revenue and Customs (HMRC) in the United Kingdom , the Canada Revenue Agency or the Australian Taxation Office . When taxes are not fully paid, the state may impose civil penalties (such as fines or forfeiture ) or criminal penalties (such as incarceration ) on
8658-623: The government. This affects economic growth and welfare , which can be increased (known as fiscal multiplier ) or decreased (known as excess burden of taxation ). Consequently, taxation is a highly debated topic by some, as although taxation is deemed necessary by consensus for society to function and grow in an orderly and equitable manner through the government provision of public goods and public services , others such as libertarians and anarcho-capitalists are anti-taxation and denounce taxation broadly or in its entirety, classifying taxation as theft or extortion through coercion along with
8769-502: The household. Thus, tax collectors often monitor newspaper articles for stories about wealthy people who have lent art to museums for public display, because the artworks have then become subject to personal property tax. If an artwork had to be sent to another state for some touch-ups, it may have become subject to personal property tax in that state as well. Inheritance tax, also called estate tax, are taxes that arise for inheritance or inherited income. In United States tax law , there
8880-485: The individual characteristics of the taxpayer, whereas indirect taxes are levied on transactions irrespective of the circumstances of buyer or seller." According to this definition, for example, income tax is "direct", and sales tax is "indirect". Taxpayer The term "taxpayer" generally characterizes one who pays taxes . A taxpayer is an individual or entity that is obligated to make payments to municipal or government taxation-agencies . Taxes can exist in
8991-429: The issuance of a ticket, a motorist may retain an attorney to represent them in a traffic infraction. Retaining or consulting an attorney may be beneficial to the motorist because an attorney would better understand how to contest an infraction in any given state or municipality. Attorneys may offer full representation in court, taking a case from inception to disposal and potentially appeals, although it may be possible for
9102-407: The judge may also order a jury trial , in which case a jury will hear arguments from both sides, and then consider the facts in the case and render a verdict . The motorist may, for example, put forward a reason their alleged violation was justified, such as to "get out of the way of an ambulance or avoid a collision with another motorist", and call into doubt the level to which the officer recalls
9213-409: The judge or Justice of Peace, who then decides the matter. If the motorist pleads guilty, the outcome is equivalent to conviction after trial. Upon conviction, the motorist is generally fined a monetary amount and, for moving violations, is additionally given demerit points, under each province's point system . Jail time is sometimes sought in more serious cases such as racing or stunt driving. In
9324-512: The jurisdiction, which tax-law principles in the jurisdiction may modify or replace. The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive . Rates of tax may vary or be constant (flat) by income level. Many systems allow individuals certain personal allowances and other non-business reductions to taxable income, although business deductions tend to be favored over personal deductions. Tax-collection agencies often collect personal income tax on
9435-734: The land. Property taxes are usually charged on a recurrent basis (e.g., yearly). A common type of property tax is an annual charge on the ownership of real estate , where the tax base is the estimated value of the property. For a period of over 150 years from 1695, the government of England levied a window tax , with the result that one can still see listed buildings with windows bricked up in order to save their owner's money. A similar tax on hearths existed in France and elsewhere, with similar results. The two most common types of event-driven property taxes are stamp duty , charged upon change of ownership, and inheritance tax , which many countries impose on
9546-508: The late Qing China . Occupational taxes or license fees may be imposed on businesses or individuals engaged in certain businesses. Many jurisdictions impose a tax on vehicles. A poll tax, also called a per capita tax , or capitation tax , is a tax that levies a set amount per individual. It is an example of the concept of fixed tax . One of the earliest taxes mentioned in the Bible of a half-shekel per annum from each adult Jew (Ex. 30:11–16)
9657-463: The late 1970s and early 1980s also saw an increased tendency for jurisdictions to re-classify certain speeding violations as civil infractions. In contrast, for more "serious" violations, traffic violators may be held criminally liable, accused of a misdemeanor or even a felony . Serious violations tend to involve multiple prior offenses, willful disregard of public safety, death or serious bodily injury, or damage to property. A frequently used penalty
9768-475: The loss, such that business losses can only be deducted against business income tax by carrying forward the loss to later tax years. In economics, a negative income tax (abbreviated NIT) is a progressive income tax system where people earning below a certain amount receive supplemental payment from the government instead of paying taxes to the government. Most jurisdictions imposing an income tax treat capital gains as part of income subject to tax. Capital gain
9879-585: The non-paying entity or individual. The levying of taxes aims to raise revenue to fund governing , to alter prices in order to affect demand , or to regulate some form of cost or benefit . States and their functional equivalents throughout history have used the money provided by taxation to carry out many functions. Some of these include expenditures on economic infrastructure ( roads , public transportation , sanitation , legal systems , public security , public education , public health systems ), military , scientific research & development , culture and
9990-547: The original offence date. If a driver accumulates enough points, a suspension/loss of licence can occur. For a fully licensed driver in Ontario, the accumulation of six demerit points results in a "warning" letter. At nine points, the driver is scheduled a mandatory interview to discuss their record and give specific reasonings as to why the licence should not be suspended. If a driver fails to attend this meeting, their licence may be automatically suspended. At 15 or more points,
10101-417: The percentage of the tax burden as it relates to income or consumption. The terms progressive, regressive, and proportional are used to describe the way the rate progresses from low to high, from high to low, or proportionally. The terms describe a distribution effect, which can be applied to any type of tax system (income or consumption) that meets the definition. The terms can also be used to apply meaning to
10212-582: The photographs being excluded as evidence because there is no indication to show on the Part A that they were taken at the time of the offence. Upon being issued a traffic infringement, or parking infringement notice, (in person or to a vehicle) an accused person will generally receive a penalty reminder notice in the mail approximately 28 days later, if the fine remains unpaid. Under the Fines Act of 1996 (NSW) Time for service of penalty reminder notices by post,
10323-419: The province of Ontario, drivers who are convicted of certain driving related offences result in demerit points recorded onto their driving records. It is commonly misconceived that drivers actually "lose" points due to convictions for certain traffic offences. In fact, a driver begins with zero demerit points and accumulates demerit points for convictions. Demerit points stay on a driver's record for two years from
10434-458: The public sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments. Governments also obtain resources by "creating" money and coins (for example, by printing bills and by minting coins), through voluntary gifts (for example, contributions to public universities and museums), by imposing penalties (such as traffic fines ), by borrowing and confiscating criminal proceeds. From
10545-439: The purpose of taxation is to maintain the stability of the currency, express public policy regarding the distribution of wealth, subsidizing certain industries or population groups or isolating the costs of certain benefits, such as highways or social security. The Organisation for Economic Co-operation and Development (OECD) publishes an analysis of the tax systems of member countries. As part of such analysis, OECD has developed
10656-630: The right time and securing the correct tax allowances and tax relief. The first known taxation occurred in Ancient Egypt around 3000–2800 BC. Taxes consist of direct or indirect taxes and may be paid in money or as labor equivalent. All countries have a tax system in place to pay for public, common societal, or agreed national needs and for the functions of government. Some countries levy a flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of yearly income amounts. Most countries charge
10767-462: The same time, most provinces have laws specifying administrative penalties for driving with a blood alcohol level which does not exceed the criminal blood alcohol level of .08, in particular for newly licensed drivers. Each province maintains a database of motorists, including their convicted traffic violations. Upon being ticketed, a motorist has a chance to plead guilty or not guilty with an explanation. The motorist or their representative must attend
10878-406: The specific details of the situation among the many tickets they have issued. In Washington state, there is a local option for courts to permit a decision on written statements, without the officer's live appearance in court. California offers a procedure in which both the officer and the ticketed driver may appear in writing, through a Trial by Written Declaration. Some states permit challenging
10989-411: The spot' by a police officer although there are other authorised officers that can issue traffic infringements such as Transport for NSW heavy vehicle inspectors and Traffic Commanders. The infringement notice is written on three carbonised pieces of printed paper, known as Part A, B and C. Part A is the original and is sent to the State Debt Recovery Office (SDRO) by the issuing officer when they return to
11100-596: The state level, usually in their own consolidated Acts of Parliament which have been based upon the Australian Road Rules . Traffic tickets are known as Traffic infringement notices (TIN's) in New South Wales . Transport for NSW maintains a database of all registered holders of a driver's licence in NSW, including the driver's traffic history and registered motor vehicles. Transport for NSW maintain
11211-482: The station, Part B stays in the infringement book for accountability and Part C is given to the accused person at the scene or via post. Infringement notices issued by Councils or Commercial Clients by way of electronic handheld devices still have as associated application for details provided on a copy of the Part A, to be made available for perusal if required. In New South Wales, all Traffic infringement notices (TIN's) and Parking Infringement Notices (PIN's) are part of
11322-408: The supply of people is in fact not fixed over time: on average, couples will choose to have fewer children if a poll tax is imposed. The introduction of a poll tax in medieval England was the primary cause of the 1381 Peasants' Revolt . Scotland was the first to be used to test the new poll tax in 1989 with England and Wales in 1990. The change from progressive local taxation based on property values to
11433-513: The taxation of select consumption, such as a tax on luxury goods and the exemption of basic necessities may be described as having progressive effects as it increases a tax burden on high end consumption and decreases a tax burden on low end consumption. Taxes are sometimes referred to as "direct taxes" or "indirect taxes". The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. An economic definition, by Atkinson, states that "...direct taxes may be adjusted to
11544-403: The total payroll. These taxes may be imposed in both the country and sub-country levels. A wealth tax is levied on the total value of personal assets, including: bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses , financial securities , and personal trusts. Liabilities (primarily mortgages and other loans) are typically deducted, hence it
11655-680: The total tax paid is the same, but it is paid at differing points in the process. VAT is usually administrated by requiring the company to complete a VAT return, giving details of VAT it has been charged (referred to as input tax) and VAT it has charged to others (referred to as output tax). The difference between output tax and input tax is payable to the Local Tax Authority. Many tax authorities have introduced automated VAT which has increased accountability and auditability , by utilizing computer systems, thereby also enabling anti-cybercrime offices as well. Sales taxes are levied when
11766-409: The trial court may adjourn the hearing to a date upon which the officer is able to appear or, particularly if good cause is not shown for the officer's absence, the court judge may dismiss the charge. Although each judge, state, county or municipality handle contested hearings a little differently, the court may make provisions for the prosecutor to achieve a deal with the motorist, often in the form of
11877-538: The use of force . Within market economies, taxation is considered the most viable option to operate the government (instead of widespread state ownership of the means of production ), as taxation enables the government to generate revenue without heavily interfering with the market and private businesses; taxation preserves the efficiency and productivity of the private sector by allowing individuals and companies to make their own economic decisions, engage in flexible production , competition , and innovation as
11988-443: The view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector , levied on a basis of predetermined criteria and without reference to specific benefits received. In modern taxation systems, governments levy taxes in money; but in-kind and corvée taxation are characteristic of traditional or pre- capitalist states and their functional equivalents. The method of taxation and
12099-516: The year 1643, as part of a scheme of revenue and taxation devised by parliamentarian John Pym and approved by the Long Parliament . These duties consisted of charges on beer, ale, cider, cherry wine, and tobacco, to which list were afterward added paper, soap, candles, malt, hops, and sweets. The basic principle of excise duties was that they were taxes on the production, manufacture, or distribution of articles which could not be taxed through
12210-443: Was a form of the poll tax. Poll taxes are administratively cheap because they are easy to compute and collect and difficult to cheat. Economists have considered poll taxes economically efficient because people are presumed to be in fixed supply and poll taxes, therefore, do not lead to economic distortions. However, poll taxes are very unpopular because poorer people pay a higher proportion of their income than richer people. In addition,
12321-511: Was arrested for speeding on May 20, 1899 for driving 12 miles per hour on Lexington Avenue in Manhattan. In Dayton, Ohio , police issued a paper ticket to Harry Myers for going twelve miles per hour on West Third Street in 1904. Another early speeding ticket was issued in 1910 to Lady Laurier, the wife of Wilfrid Laurier , Prime Minister of Canada, in Ottawa, Ontario , Canada, for exceeding
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