Taxation Project

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Table of Contents
Chapter 11

Theoretical considerations about1

taxes and fees1

1.1.General Considerations about Taxes and Fees1

1.2. Direct taxes3

1.2.1. Profit Taxes4

1.2.2. Salary (payroll) taxes6

1.2.3. Dividend taxes7

1.2.4. Local taxes8

1.3. Indirect taxes9

1.3.1. Value Added Tax11

1.3.2. Duty13

1.3.3. Excise14

Chapter 2 – S.C. Sarten S.R.L.16

Company presentation16

2.1. Short history16

2.2. Organizational Structure17

2.3. Trading partners20

2.4. Activity21

Chapter 323

Case study – Monograph Accounting23

3.1.Monograph accounting23

3.2.Trial Balance27

3.3.Balance Sheet28

Chapter 1

Theoretical considerations about

taxes and fees

1 General Considerations about Taxes and Fees

The legal definition and the economic definition of taxes differ in that economists do not consider many transfers to governments to be taxes. For example, some transfers to the public sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments. To tax (from the Latin taxo) is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. Tax[1] is a form of removal of part of income and / or assets of individuals and businesses to the state to cover public expenditure. This sampling is not necessarily on a non-refundable and non counterpaid directly from the state. Governments also obtain resources by creating money (e.g., printing bills and minting coins), through voluntary gifts (e.g., contributions to public universities and museums),by imposing penalties (e.g., traffic fines), by borrowing, and by confiscating wealth. From the view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received. Governments use different kinds of taxes and vary the tax rates. This is done to distribute the tax burden among individuals or classes of the population involved in taxable activities, such as business, or to redistribute resources between individuals or classes in the population. Historically, the nobility were supported by taxes on the poor; modern social security systems are intended to support the poor, the disabled, or the retired by taxes on those who are still working. In addition, taxes are applied to fund foreign aid and military ventures, to influence the macroeconomic performance of the economy (the government's strategy for doing this is called its fiscal policy; see also tax exemption), or to modify patterns of consumption or employment within an economy, by making some classes of transaction more or less attractive. A nation's tax system is often a reflection of its communal values or/and the values of those in power. To create a system of taxation, a nation must make choices regarding the distribution of the tax burden—who will pay taxes and how much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of establishing the tax system, these choices reflect the type of community that the public and/or government wishes to create. In countries where the public does not have a significant amount of influence over the system of taxation, that system May be more of a reflection on the values of those in power.

1.2. Direct taxes

Direct taxes constitute the basis of the taxation system. Historically, having appeared later than the direct taxes, indirect taxation mechanisms are transformed into a more palpable channel for the provision of state budget revenues, i.e. for covering the...
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