QUESTION 6 [81 MINUTES] [45 MARKS] a) Describe the main purpose of taxation in a modern economy and outline three basic

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Question 6 81 Minutes 45 Marks A Describe The Main Purpose Of Taxation In A Modern Economy And Outline Three Basic 1 (32.99 KiB) Viewed 69 times

QUESTION 6 [81 MINUTES] [45 MARKS] a) Describe the main purpose of taxation in a modern economy and outline three basic principles that a good tax system should be guided by. (5 marks) b) Explain the difference between direct and indirect taxation, giving one example of each. (2 marks) c) Compare and contrast source based and residence-based tax system. [4 marks] d) Discuss each of the bases for determining the source principle according to caselaw. Support your answer with examples and case law. (9 marks) e) Discuss the concept of real source vs deemed sources with support of examples and caselaw. (9 marks) f) Discuss the benefits of a regressive tax heads (6 marks) g) Discuss the controversy associated with the inclusion of illegal receipts in gross income. Motivate your answer with caselaw. (6 marks) h) Outline the rights of taxpayers. (4 marks)