Elements of the tax are those aspects which constitute the legal body of tax law and its enforceability.


6/8/20223 min read


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Law is comprised of components or elements that build it up/constitute what makes it applicable and the areas they apply to. Elements of the tax are those aspects which constitute the legal body of tax law and its enforceability. It also states the reasons for taxation, the bodies in charge, the percentage of tax to be paid, and many others.

These elements tend to be universal sometimes as they are clearly defined by the legislation and for the separate taxes. The term "Elements of Taxation" is used directly by the Tax Code of the Russian Federation.

Elements of Tax Law may include: ·

  • The object of taxation: The object of taxation highlights the purpose of the tax and the implementation. The objectives of these taxes are listed accordingly and are made to show equality for all classes. However, some studies may show that the rich are to pay more in taxes as opposed to the poor. This element shows the purpose for the establishment of such a tax law.

  • Tax rate: This states the rate/per cent each individual is to pay for taxes. These rates are to be clear and certain. It is to show how much should be paid to reduce the possibilities of fraud and corruption within the tax system and improve fairness and clarity. It requires that it is affordable for the taxpayer and the typical tax rate is 5%. This rate enables them to have enough money left over to cater to other needs.

  • Procedure for tax payment: This element shows how tax payment should be carried out, to whom, what documents are necessary and what period. These procedures create ease in tax payment and individuals to perform their duties as citizens. It also assists tax authorities in proper documentation and processing. ·

  • Tax base: This is the total accreditation of an individual's asset to ascertain what should be subject to taxation by the authorities in charge. It covers the economic activity, property, income, and consumption of an individual to give an efficient and neutral tax base. An account of such data gives the authorities a background check on what and who they are handling.

  • Tax period: There is a certain period that would be prescribed by the government or tax authority for filing. This period is known as the "Tax Period" and it includes documentation of Tax returns or a period when tax is to be paid. It can also be described as a period for tax calculation which involves highlighting the process and procedure for such.

Tax elements in simpler terms give a detailed look at the regulatory basis, amount of tax, right of a taxpayer, and authorities responsible for tax payment, among others. According to Adam Smith, there are "Canons of Tax Law" which include ·

  • Canon of equality

  • Canon of economy

  • Canon diversity

  • Canon flexibility

  • Canon certainty

  • Canon of convenience

  • Canon of efficiency

In conclusion, taxes are levies given by the government on individuals/ legal personalities. These taxes are typically mandatory and are revenues that cover government activities or public service workers/programs. A taxpayer has the burden of paying their tax based on their assets and these payments vary.

Tax laws are established to govern these tax processes and payments. The elements of tax law give a detailed expression of what, why, where, how, and when these are carried out to ensure ease in the tax payment system.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com


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