Research Proposal

Topics: Tax, Taxation, Income tax Pages: 7 (1560 words) Published: December 3, 2014
Topic
Analysis of Taxpayer’s Satisfaction Regarding the Current tax system in Sri Lanka.

Background of the study
Taxation is the most important source of revenues for any governments typically accounting more than 90% of their income. The reminder of government revenue comes borrowing & from charging fees for services. Countries differ considerably in the amount of tax they collected. Government use tax revenues to pay military & police to build dams & roads to operate schools & hospitals to provide fund to the poor & medical care to the elderly & for hundreds of other purposes. Without taxes to fund its activities, government could not exist. Most of the governments also use taxes to fund welfare & public services. This service can include education systems, health care systems & pensions for the elderly, unemployment benefits & public transportation. Energy, water & waste management systems are also common public utilities. Taxes can be further divided into direct tax & indirect tax and may be paid in money or as corvee labour. The term “Tax” can be more precisely defined as a “Pecuniary burden laid upon individuals or property to support the government”….. a payment enacted by legislative authority. It can be also said as “an involuntary payment or donation but an enforced contribution exacted pursuant to legislative authority” and is “any contribution imposed by government…….. Whether under the name of toll, tribute, tallage, gable, impost, duty, custom, excise, subsidy, aid, supply or other name” In addition to using taxation to raise money governments may raise or lower taxes to achieve social & economic objectives or to achieve political popularity with certain groups. Taxation can redistribute a society’s wealth by imposing a heavier tax burden on one group in order to find service for another. Also some economists consider taxation an important tool for maintaining the stability of a country’s economy.

There is sufficient Evidence to show that tax in some from was levied from the dynasty of king Saddatissa in Anuradhapura kingdom. At this period there was a direct relationship between taxation & the service provided by his people. It is a starting of tax system in Sri Lanka. In Sri Lanka there were several department & councils deal the collection of taxes on behalf of the government. The Department of Inland Revenue mainly administrated the central government tax. Other departments like department of customs & department of Excise also collect some levies behalf of the central government. After the 13th Constitutional change in provincial level the Provincial councils the Municipal councils & Pradesha Saba also collect some tax in their management area.

Currently the Department of Inland Revenue mainly administrated following taxes. Income Tax
Value Added Tax
Economic Service Charge
National Building levy
Debit Tax
Stamp Duty
Betting & Gambling Tax
Withholding Tax
Construction Industry Guarantee Fund Levy
Social Responsible Levy
In this study it covered the taxpayer’s satisfaction of the current tax system which is administrated by the Department of Inland Revenue. Problem Statement
The research problem focused in this study is whether taxpayer satisfaction has an impact on revenue generation in Department of Inland Revenue & whether current tax system in Sri Lanka is suitable for the country according the taxpayer view. Research Questions

What is the taxpayer’s satisfaction in current tax system in Sri Lanka? and the taxpayer satisfaction as a subject of research?  
How differentiate the concept of current tax system in Sri Lanka from historical tax system & what are the changes have been occurred in the present?  
How far strength & appropriateness of the current issues in collecting tax revenue?  
What are the changes of tax payer’s satisfaction with the current tax system & actually whether tax payer’s satisfaction has an impact on revenue generation in...
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