Pregledni rad
https://doi.org/10.3935/rsp.v14i3.702
An Analysis of the Theoretical Approaches to the Basic Institutes of the Income Tax Regulation
Nikola Mijatović
; Pravni fakultet Sveučilišta u Zagrebu
Sažetak
Income tax appeared in the time of growing industrialisation, when a larger number of people realised an income, which opened up a possibility of introducing income as a new subject of taxation. Considering its stratification and levying techniques, it is a form of taxation which belongs to the most complex forms of taxation. Therefore an important prerequisite of its successful collection is a developed economy with a high employment rate, accounting and taxation services of quality and a marked readiness of the taxpayers to co-operate with the tax authorities. The reasons for the complexity of income tax lies in the fact that, apart from the realisation of the fiscal aim, it is entrusted to achieve a number of other goals, primarily those of social nature. The social feature of the income tax is clearly marked by the respect of personal characteristics of the taxpayer and by the acceptance of personal deduction as non-taxable part of income that serves to satisfy personal life necessities, which grow simultaneously with the growth of the citizens' standard. The personal non-taxable amount of the taxpayer further increases with the number of his or her dependants, which clearly proves the social nature of the income taxation. Moreover, the social trait of the income tax is expressed through the taxation proportionate to the economic power, which contributed to the fact that income tax is perceived as a relatively equitable tax, as far as a for of taxation can be equitable. However, the tax equity which is realised through a progressive system of income taxation, as well as the existence of numerous tax exemptions and privileges of other nature, leads to a more complex procedure of tax calculation, which is subject to criticism from the standpoint of profitability of its collection. In order to reduce the complexity of such a nature, in the future we can expect a tax simplification within the traditional income taxation system. It is to be expected that this simplification will be reflected through a partial reduction of subjectivisation of the income tax (so-called income tax depersonalisation), and a switch to flat-rate taxation and standardization of the calculation and collection of the income tax, which will have a direct impact on the reduction of the social role of the income tax.
Ključne riječi
income tax; taxpayer; economic power; income; progressive tax rates
Hrčak ID:
30327
URI
Datum izdavanja:
28.11.2007.
Posjeta: 4.084 *