Meaning & Definition of word "Taxation"

Taxation

/tækˈseɪʃən/

1. The process or system of imposing financial charges or levies on individuals or businesses by a government or authority.
- Example: The taxation system in the country is designed to ensure that all citizens contribute fairly to public services.
2. A specific amount or percentage that is charged as a financial levy by a government.
- Example: The taxation on alcohol has been increased to discourage excessive consumption.
3. The action of taxing, or the state of being taxed.
- Example: Controversies often arise over taxation, especially regarding how tax revenue is spent.
4. The government policy regarding the assessment and collection of taxes.
- Example: Recent reforms in taxation aim to simplify the tax code and reduce the burden on small businesses.

●From Latin 'taxatio', meaning 'a estimating, assessment'.

tax evasion:

The illegal act of not paying taxes owed.

tax code:

The laws and regulations governing taxation.

progressive taxation:

A tax system where the rate increases as the taxable amount increases.

tax:

A compulsory financial charge or levy.

fiscal:

Relating to government revenue, especially taxes.

revenue:

The income generated from taxes and other sources.

Meaning: Tax day

● Example Sentence: March 15 is known as tax day in the US, when individual returns are due.

Meaning: Write-off

● Example Sentence: Businesses often look for write-offs to reduce their taxable income.