A method of fairly converting and collecting; revenue to
finance the nation’s recurrent expenditure; security, healthcare, education,
environment, housing, water, transport net, etc., while increasing the nation’s
productivity; agriculture, mineral extraction, manufacturing and services
sectors, incorporated within the nation’s economic zone, and capital receipts to
build on the nation's intrinsic and successive valued assets, from the nation’s
current users, to maintain, repair and expand such assets for the benefit and enjoyment
of all present and future owners.
Every individual that earns an income within the said
economic zone must pay taxes; a fee to use the nation's assets, services or
resources, and should be randomly audited and assessed to check compliance. The
small trader or taxi operator must declare how property and expensive items
were afforded, as too a salary employee who must declare off the books income,
and so too must the director or CEO declare the artwork and swimming pool at
home. Noting that, the tax charge is equal to the same percent on every dollar.
The tax collection authority must cross reference the individual's declaration
and the source of funds.
Value Added Tax (VAT); a consumption charge, is much easier
to oversee and collect, from operations that are VAT registered, have met the
legal requirements and an annual sales receipt minimum. The economic activities
being taxed are the operation's responsibility, to charge, report and pay, or
be closed down and fined. Consumers make their own choices, to purchase basic
foods and medicines VAT free or foreign delicacies and luxury cars, and pay the
VAT based on those choices. The larger the purchase price, the easier it is to
make a cross reference between the individual's declaration and the supplying
operation by the tax collection authority.
Corporations are charged Corporate Tax on Profits; for the
use of the nation's assets, and also can be charged other industry or sector
specific levies. Taxes based on Sales and Service, environmental, unemployment
and other fees are designed to eradicate social concerns. Standard audits on
these entities are carried out by external auditors as required by law, reported
to the company registry and the stock exchange, if listed, but it is the tax
collection authority which must independently examine the corporation's
accounts and related items and cross reference it to any and all regulatory
agencies to make sure the correct taxes are paid.
All entities; Corporations and Individuals, are entitled to
transact activities regulated and requiring legal permission, granted by the
payment of Royalties, Licenses and Duties. Entities; Quarries and Loggers,
mainly operating in the extractive industries are charge royalties for removing
natural resources from the economic zone, which cannot be easily replenished.
Similarly, entities; Pharmaceuticals, wishing to deal in control items are charged
a license fee. And entities; Retailers, seeking to import goods are charged
duties. All such charges fall under the ambit of the tax collection authority,
and must be cross reference linking the issuer and the entity.
Property Taxes are charged to real estate owners to assist
in managing these entities’ perpetuation responsibilities. Noting that, every
corporation and individual that owns land should be expected to keep it free of
waste and disease but this can ultimately fall to taxpayers to protect the public
health. Again, the tax collection authority must cross reference registered
property owners on the land registry, with entities; corporations on the
company registry and individuals’ births and deaths registry, to ensure the due
taxes are paid.
It is this secure computerized database of births and
deaths, cross referenced with the land, company, import duties, license and
royalty register and tied into an immigration passport database that would form
a taxpayers' registry, to check against corporations, consumption and
individuals tax records. Foreign companies and individuals will be picked up
from the company register and immigration, and further cross referenced from
sector regulatory and banking registries. Hence, all, required to pay taxes
will be identified by the relevant tax collection authority.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
