Govt. needs funds for various developmental activities. The major source of fund as far as Govt. is concerned is Taxation. Various modes of recovery of taxes might be prevalent in various countries.Let us discuss such modes:
in both the UK and Australia, income tax is collected by the employer and remitted to the government tax office. In this way it bypasses the employee and does not rely on the employee to remit their income tax to the government.
Sales tax (VAT in the UK and GST in Australia) is collected at the point of sale by the retailer and remitted to the government tax office. Which similarly bypasses the consumer having to remit the sales tax to the government.
In Iraq, income tax is collected in multiple ways such as direct driving and this method ensures access to the State share and prevent tax evasion in addition to other ways such as the development of a permitted conduct of a taxon of the tax body for the purposes of completion of financial transactions for individuals
TDS(Tax Deducted at Source) and TCS(Tax Collected at Source) are really wonderful ways of collecting tax.
In Sri Lankan context,
In respect of a person who is deemed to be resident in Sri Lanka is chargeable with income tax in respect of his income from Sri Lanka and income derived by him from outside Sri Lanka. The liability to income tax therefore extends to his global income. A person who is deemed to be non-resident in Sri Lanka is chargeable with income tax in respect of only the gains and profits, arising or derived from Sri Lanka.
An individual, who is a resident in Sri Lanka for a year of assessment or who is a non- resident in Sri Lanka for a year of assessment, but is a citizen of Sri Lanka, will receive an aggregate relief of Rs 500,000 for that year of assessment.
Income Tax is payable on self-assessment basis, a person who is an “instalment payer” shall pay tax by quarterly instalments
Income tax in Rwanda is centralized and is collected and recovered by the Rwanda Revenue Authority. Each taxpayer files his/her returns using an online system then proceeds with the payment through commercial banks.