The term “abatement” generally refers to the reduction or elimination of a tax liability. An abatement may be granted by a government entity for a variety of reasons, such as to encourage investment in a certain area or to alleviate financial hardship. Abatements may be temporary or permanent, and they may apply to all taxpayers … Read more
The ability-to-pay principle is the general idea that people should pay taxes according to their ability to pay them. This principle is often used to justify progressive taxation, which taxes people at higher rates if they have more income. There are a few different ways to measure ability to pay taxes. One common way is … Read more
The Mello-Roos Tax is a type of tax that is assessed on property owners in order to finance the construction or improvement of public facilities within a designated community facilities district. This type of tax is typically used to fund the construction of roads, schools, and other infrastructure projects. Property owners who are subject to … Read more
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) was a federal law that was enacted in 2001. The law included a number of provisions that were designed to stimulate economic growth and provide tax relief to taxpayers. Some of the key provisions of the law included reducing the marginal income tax rates … Read more
DOTAS is the disclosure of tax avoidance schemes. It is a system introduced in the UK in 2004 which requires promoters of certain tax avoidance schemes to disclose those schemes to HMRC. The scheme is designed to allow HMRC to identify and counter new and innovative tax avoidance schemes before they become widely used. Under … Read more
Pump priming is an economic term that refers to the initial injection of government spending into the economy in order to stimulate economic growth. The term is often used in the context of Keynesian economics, which advocates for government intervention in the economy in order to promote growth and reduce unemployment. What is true compensatory … Read more
A clearance certificate is a document that proves that an individual or company has no outstanding tax liabilities. In order to obtain a clearance certificate, the individual or company must first file all required tax returns and pay any taxes owed. Once the tax returns have been filed and the taxes have been paid, the … Read more
Taxation Defined, With Types of Taxes. What is history of taxation? The first recorded instance of taxation dates back to Ancient Egypt, where the Pharaohs imposed taxes on their subjects in order to finance their grandiose building projects. In Ancient Greece, cities would levy taxes on their citizens to pay for the upkeep of public … Read more
The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law that requires U.S. persons who have financial interests in foreign countries to disclose those interests to the Internal Revenue Service (IRS). FATCA was enacted in 2010 in an effort to combat tax evasion by U.S. taxpayers with foreign accounts. FATCA requires financial institutions … Read more
How do FTAs work? For example, the North American Free Trade Agreement (NAFTA).. What is a Free Trade Agreement (FTA)? A Free Trade Agreement (FTA) is an agreement between two or more countries to reduce or eliminate tariffs, quotas, and other trade barriers, and to promote cooperation on issues such as customs procedures and dispute … Read more
