Tax

A tax is a charge imposed by a government on an individual or corporate entity. Taxes can be imposed in a variety of ways, such as:

  • Tax on income
  • Tax on purchases
  • Tax on imported goods
  • Tax on the value of property
  • Tax on an estate
  • Tax on gifts

Taxes are compulsory, which means that tax evasion is treated as a criminal offense. Governments are primarily financed from their tax receipts. These funds are used to pay for governmental operations, transfers, and capital asset purchases and maintenance.