Question

hlσ guчѕ

whαt αrє thє díffєrєncє вєtwєєn tαх αnd σthєr pαчmєntѕ ?

nєєd α cσrrєct αnѕwєr

ＢＹ ＫＵＴＴＹＭＵＳＨＲＯＯＭ ​

Answer 1

Tax is levied compulsorily by the government on its citizens to defray the expenses of the government.

As payment of tax is compulsory, refusal to pay tax invites punishment.

Answer 2

Explanation:

Tax is levied compulsorily by the government on its citizens to defray the expenses of the government. A tax, by definition, is a payment in return for which no direct and specific quid pro quo is rendered to the taxpayer. From the definition of a tax, we can pinpoint some of the important charac­teristics of tax.

Firstly, a tax is a compulsory payment levied by the government on its citizens and various business firms. As payment of tax is compulsory, refusal to pay tax invites punishment.

Secondly, there is no direct quid pro quo relationship between the taxpayer and the tax-levying authority. That is to say, a taxpayer cannot demand any reciprocal benefits for paying taxes.

Thirdly, a tax is levied to incur public expenditure for the benefit of the country as a whole.

Fourthly, the basis of taxation cannot be the same for all periods. It is reviewed periodically by the taxing authority.

On the other hand, a fee is a voluntary payment to the government for the special services rendered by it in the public interest, but conferring a specific advantage on the person paying it.