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Purpose of taxation (Financial Effects (Less income to spend, Goods more…
Purpose of taxation
Financial Effects
Less income to spend
Goods more expensive
Day to day expenses increased
Buying & selling property is dearer
Government Services provided
Donations made to charities in Ireland & abroad
Improved roads & building of new ones
Social Welfare Payments
Ethical consideration
Tax from ethical perspective:To protect the less well-off
Ethical Considerations with tax avoidance?
Ethics: To do the right thing
'Black Economy'- Cash in hand, no receipts, no tax paid
Social Effects
Used to change consumer behaviour
eg. Plastic Bag levy.
More environmentally consious.
Helps Society-Highlights dangers to health. Tax on goods such as cigarettes & sugar tax
Legal Effects
Tax Avoidance: Using legal methods to avoid or reduce tax bill
Tax Evasion: Not Paying tax legally required to