WHAT IS TAX?
Tax is a compulsory, individual and non-refundable payment made
to the state or local budget in the form of collection of monetary
means from taxpayers with the purpose of providing the financial
basis to the state and municipal activities. Failure to pay taxes is
punishable by law.
Main purposes
Revenue - taxes raise money to spend on armies, roads, schools and
hospitals, and on more indirect government functions like market
regulation or legal systems;
Redistribution - normally, this means transferring wealth from the
richer sections of society to poorer sections;
Taxation systems

Direct taxes - direct tax is one paid directly to the government by the
persons on whom it is imposed;

Indirect taxes – are the taxes collected by an intermediary (e.g. a retail
store) from the person who bears the ultimate economic burden of the tax
(e.g. the customer).
Elements of taxation Subject of taxation; Basis for taxation;
Tax period;
Tax rate;
Tax calculation procedure;
Tax payment procedure and timing