Tax audit definition economics The theoretical implications of an increase in tax enforcement seem to be straightforward: when firms determine their optimal amount of tax planning investments such that the marginal benefit equals the marginal cost, then increasing the expected costs of nonaccepted tax planning strategies (due to an increase in audit . 1 TAX AUDITS DEFINITION According to Rudy & Wirawan (2010: 52), tax audits are a series of activities to collect and process data, information, and/or Provide training to staff on tax regulations and procedures. , aggressive or risky) tax positions are supported by a relatively weak set of facts and therefore are less likely to be sustained upon a tax audit: No: UTB, tax rate volatility: 20: Towery : Tax Jun 14, 2024 · Tax audits may seem intimidating, but with proper preparation and knowledge, they can be managed effectively. The taxes are the primary source of government revenue. A tax audit may be triggered by a tip-off, an annually scheduled analysis, or at random. Simply put, tax audits are a regular aspect of the financial environment. Economic nexus, however, provides fewer avenues for states to prove that an entity should Taxation is central to building strong, prosperous and inclusive societies by helping to raise the revenues needed to deliver much needed public goods and services. A tax audit can be a nerve-wracking experience, but by understanding the process, preparing adequately, and seeking professional help when necessary, you can protect yourself and minimize the potential consequences. Our guide offers insight into tax audits so you can feel more prepared if you face one in the future. Wayfair decision. Note: Most agents know how much time they have to spend on each audit, which might range from eight to 10 hours for an office audit. It aims to identify where the organization is wasting resources, whether it’s time, money, or manpower, and to suggest practical ways to improve and optimize operations. Audits ensure financial statements are compliant and processes are efficient. ” misstatements are detected during the audit. In general, taxpayers declare their tax returns monthly and annually to the […] #3 - Office Audits . Tax avoidance exposes a creditor to undesirable risk, including more volatile cash flows, tax audit risk, and information opacity. competence and completeness of audit, the vigor and impartiality of enforcement, and the promptness and finality of action all influence the amount of revenue collected, the distribution of the tax load, and the economic effects of the tax. 4. The findings of a tax audit may lead to additional assessments; or be extended Mar 16, 2023 · Tax compliance involves being aware and complying with tax laws and regulations set by the government and tax authorities. Learn everything you need to know about tax audits, including what triggers an audit, how to prepare, and what to expect during the process. If you are dealing with a tax dispute or need help preparing for an audit This book discusses how taxation can contribute to a sustainable economic development. By concentrating on firms filed tax that returns within this period, we use the audit outcome of the assessed firms to predict the evasion Tax audit – performance audit special audit consideration the accounting and tax reporting economic entity for the purpose of expressing an opinion on the reliability Feb 2, 2022 · Keywords: Tax audit, desk tax audit, field tax audit, revenue generation, company income tax 1. According to the Tax Code, the annual complex audit plan should include 50% of taxpayers with high risk, 30% with medium risk, and 20% with low risk. The most common IRS audit is the correspondence audit, which accounts for roughly 75 percent of all audits and is the simplest. It may be triggered by anomalies in tax Dec 24, 2024 · Final Thoughts: Protecting Yourself Against Tax Audits. Studies in Business and Economics - 238 - Studies in Business and Economics INTERNAL AUDIT: DEFINING, OBJECTIVES, FUNCTIONS AND STAGES PETRA ȘCU Daniela Lucian Blaga University of Sibiu, Romania Abstract: This article aims, through a detailed presentation as to provide clarification for a better Oct 20, 2020 · We collect individual participant data from 70 papers that use laboratory experiments to examine individual tax evasion behavior (or “Tax Evasion Games”), in order to use meta-analysis to estimate the impacts of different public policy, experimental design and individual level variables on tax evasion choices. Business. Assessment of Tax audit practices and its Effect in increasing revenue in Ethiopia a case in ERCA Thesis Page- 2 Declaration I the undersigned declared that this senior project is my work & that all sources of Aug 27, 2021 · Methods to model the tax gap based on risk-based audits include: Post-stratification: taxpayers (both audited and non-audited) are divided into strata using variables that are relevant in the selection of cases for audit, the tax gap for each stratum is estimated by scaling stratum audit results to the total population size for each stratum. Mar 19, 2025 · Every state with a sales tax has economic nexus requirements for remote out-of-state sellers following the 2018 South Dakota v. Tax is the money which a person has to pay to the Central or State Government, as an enforced contribution imposed in accordance with the law. Types of Tax Auditors. Feb 7, 2020 · A tax is a charge levied by a government to raise revenue. Tax non-compliance is an unwillingness in obeying tax laws and regulations. 25 lakhs respectively under Section 44AB. It is executed to determine the efficiency of financial statements inclined by the organization. The main types of taxes include. An income tax audit is an examination of an individual or business’s income tax return by the IRS or another tax authority. Tax audits must be completed by September 30th of the assessment year and are conducted to verify the true and fair view of financial statements. Initially, as tax rates rise, tax revenues increase. To maintain public confidence, tax systems must be seen to be fair, efficient and effective, an area where international co-operation between Pay your taxes. Carrying on business (not opting for presumptive taxation scheme*) Total sales, turnover or gross receipts exceed Rs. Some studies claimed that audits have a positive impact on tax evasion (Dubin, Jan 7, 2022 · Among those are profitability, external economic activity, past audits’ results, variety of economic activity types, and others. Find IRS forms and answers to tax questions. In the case of a tax audit, an IRS agent carries out an audit at the taxpayer's place of business or home. Defend your tax return through the entire audit; Includes state and federal income tax returns; Explain your options and develop a strategy; Schedule and attend all audit appointments; Minimize your financial impact; Much More Studies in Business and Economics - 238 - Studies in Business and Economics INTERNAL AUDIT: DEFINING, OBJECTIVES, FUNCTIONS AND STAGES PETRA ȘCU Daniela Lucian Blaga University of Sibiu, Romania Abstract: This article aims, through a detailed presentation as to provide clarification for a better RSM is a leading audit, tax, and consulting adviser for mid-market business leaders worldwide. Reporting and Outcomes: Tax audits lead to revisions in penalties, tax liabilities, or interest, whereas financial audits generate reports that express opinions on the integrity of financial statements. Jun 15, 2018 · a thorough tax audit is generally quite small in most countries, almost always well less than 1% of A second strand of behavioural economics that is relevant to tax compliance focuses more on Mar 23, 2019 · Taxation on goods, income or wealth influence economic behaviour and the distribution of resources. UK Quarterly Economic Outlook - Q1 2025. Table of Contents. Mar 20, 2025 · Tax audits are completed by the IRS as a way to verify tax returns are accurate and paid in full. Here are some examples of how potential audit candidates are identified: Priority One Accounts – the state’s largest taxpayers in terms of sales tax reported; Prior productive accounts – taxpayers previously audited whose audits revealed tax due of $25,000 or more The major objectives of this study was impact of tax audit on improving The compliance of tax payer a case study of Jimma city administration revenue authority office . Fake says the taxation bureau and public security officers violated Article 22(1) of the Tax Audit Regulations when they took Fake’s accounting materials from its accounting firm without explaining legal procedure. Definition, Types & Importance Audit Management reviewed. Tax Audit: Definition, Types, Examples why economics is a separate discipline. A tax audit is a detailed examination of an individual's or business's financial records by tax authorities to ensure the accuracy of tax returns. After briefly laying out the economics of tax evasion, it focuses on recent empirical contributions. 89 In Mar 5, 2025 · An audit is an unbiased examination of the financial statements of an individual or organization. What Is Auditing? When facing a tax audit or IRS notification, or when simply seeking information about taxes, tax audits, and audit defense, the language can be confusing. The purpose of the audit is to ensure that the taxpayer has accurately reported their income and deductions and complied with tax laws and regulations. Whatever economics knowledge you demand, these resources and study guides will supply. Corporation tax – a percentage of a firm’s profit. Include the sale(s) in the vendor's audit. Definition: A tax audit, as defined in the Income Tax Act, 1961, is a legal examination of a taxpayer's financial records conducted by a Chartered Accountant (CA) to verify the accuracy of their income tax return and ensure compliance with tax laws. 2. The IRS and various state revenue departments use the terms audit, examination, review, and notice to describe various aspects of enforcement and administration of the tax laws . Tax Audit Definition. See IRM 4. Different audit types have different. The assessment looks at a number of factors, such as the likelihood or frequency of errors in tax returns or whether there are indications of non-compliance with tax obligations. It is generally accepted that a tax audit is an examination to determine whether a taxpayer has correctly reported and assessed their tax obliga-tions. 1 crore in the FY (or) If cash transactions are up to 5% of total gross receipts and payments, the threshold limit of turnover for tax audit is Rs. 1 These adverse outcomes can impose costs on signatory auditors through regulatory scrutiny, sanctions Therefore, external audits enable stakeholders to make smarter, more informed decisions about the business being audited. This study addressed the following specific research questions: 1. Audit staff employ the most effective processes and procedures using the best available technology with the least amount of disruption at the lowest possible cost. Is an audit carried out by a tax collecting agency in order to determine if a taxpayer paid the correct amount of tax. S. The 3 main types of audits are internal, external, and IRS. 10 crores (w. Mar 3, 2025 · Related: A Guide to Forensic Audits: Definition, Uses and Importance Tax audit IRS tax audits assess the accuracy of company tax returns and the amounts paid or refunded. Taxpayers are chosen for audits if they have suspiciously high claims for deductions or credits, or if their reported income is suspiciously low, but an audit may be done simply as part of a random sampling. Get your refund status. simplicity and understandability of tax forms, the competence and completeness of audit, the vigor and impartiality of enforcement, and the promptness and finality of action all influence the amount of revenue collected, the distribution of the tax load, and the economic effects of the tax. Mar 20, 2024 · Scope and Focus: Tax audits focus on tax-related records, whereas financial audits look into all facets of financial reporting. Uncertain (i. In this context an occasional audit becomes a regulatory necessity which is intended to (December 2019) - This paper reviews recent economic research in tax compliance and enforcement. Economic nexus generally requires out-of-state sellers to register and collect and remit sales tax once they meet a set level of sales or number of transactions within a state. This proposal faces opposition from the Institute of Chartered Accountants of India, emphasizing that tax audits should remain the domain of chartered accountants. Apr 7, 2024 · Definition of Efficiency Audit An efficiency audit is a comprehensive review conducted to evaluate the efficiency of an organization’s operations. A forensic audit, defined also as forensic accounting, is the process of auditing a company’s records for the purpose of satisfying a legal investigation. It's like an independent review to ensure the information you Nov 26, 2023 · One of the core tenets of a good tax system is neutrality, where the tax does not distort economic choices. They also provide guidance and assistance in various tax-related areas. The role of tax audit on compliance behavior of taxpayer was the most significant predictor out of all the predictor variables. It explains that tax audits are required for businesses and professions with annual turnover over Rs. When you’re the subject of an IRS tax audit, it’s crucial to understand that cooperation and organization are key. 3. 88 Article 22 expressly provides for warning before an inspection, ‘unless prior notice impedes the inspection’. 2020. Vertical Analysis - This analysis identifies differences between the taxpayer's business and industry standards for a given year and is an indicator of the reasonableness of gross business receipts the audit process for the tax audit quality. 1 The effect of tax audit aggressiveness on firms’ tax planning effort. Excel software help transform the variables into format suitable for analysis, after which SPSS used for data analysis. She has been in the accounting, audit, and tax profession for more than 13 years, working with Jun 20, 2024 · On the other hand, if the audit results in a tax assessment, you will be required to pay the amount assessed. However, at some point, higher tax rates can discourage economic activity, leading to a decrease in tax revenues. In other words, an audit is an examination of the processes and procedures put in place by management to ensure that accounting information is recorded accurately and the financial statements are free from material misstatements. Its primary purpose is to assess tax liability, determine refunds owed, or highlight outstanding taxes due. This, in itself, contributes to pro-moting voluntary compliance. LITERATURE REVIEW, THEORETICAL FRAMEWORK, and RESEARCH HYPOTHESIS 2. What is a Tax Audit? Tax Audit Definition a tax audit is an official examination of a taxpayer's financial records and tax returns by the tax authority to ensure compliance with tax laws. taxpayer compliance. Sep 17, 2024 · Flat Tax Definition. Discover simple explanations of macroeconomics and microeconomics concepts to help you make sense of the world. However, the role of an audit program in a modern tax administration must extend beyond merely verifying a taxpayer’s reported obligations and detection of discrepancies between a tax- Definition: An audit is an analysis or study of an accounting system that summarizes its finding with an opinion on the accuracy of the system and its reports. Prepare tax audit reports. Navigating Through a Tax Audit. In the United States, an income tax audit is the examination of a business or individual tax return by the Internal Revenue Service (IRS) or state tax authority. 1 crore or Rs. The taxpayer may request a change to the date and time of the audit if there is a legitimate reason to do so. Tax audits are not just about understanding the law; they require specialized audit skills—planning, conducting, and documenting audits in line with prescribed auditing standards. Maintain all required tax documents. Unlike progressive tax systems, where the tax rate increases as the taxable amount increases, flat taxes maintain a uniform rate for everyone, regardless of their income bracket. Mar 11, 2025 · Other professions may cover some parts of the Income Tax Act in their curriculum, but they lack the in-depth understanding required to perform a tax audit effectively. An audit can benefit the overall financial health of a business. Usually, the IRS conducts field audits when they have questions regarding more than one or two deductions. determines an appropriate materiality amount, and the audit scoping is based on this amount. Oct 31, 2024 · In economics, taxes fall on Self-Employment Tax: Definition, How It Works, and How to File. This is conducted through a letter requesting more information or a notice that requests adjustments to your return to match IRS data. 1 LITERATURE REVIEW 2. Such an audit is typically very thorough and may even cover all the items in a tax return. Jun 1, 2021 · For example, if employees work in the state, the entity is required to file payroll taxes, or if the entity owns real property, then DORs can obtain real property and tax records to help validate sales tax compliance or identify potential audit targets. What are the current tax audit practices in the Ethiopian Ministry of Revenues? 2. FY 2020-21) Feb 20, 2025 · The Institute of Cost Accountants of India (ICMAI) is making a case for cost accountants to be included as qualified professionals to conduct tax audits under the new Income Tax Bill. Thus, tax audits can affect taxpayer’s compliance. 0 INTRODUCTION A tax is a compulsory levy by government through its agencies on t he income In addition to generating revenue, the definition of tax in economics suggests that it can also be used as a tool to influence behavior. Jan 21, 2023 · Based on the theoretical analysis of research in the relevant field, it is proposed to define the state tax audit within the framework of transformational processes of innovative economic development. Tax auditors can either be internal, external or government auditors. What is the tax audit quality Ethiopian Ministry of Revenues? According to Russell (2000) three key participants may Sep 28, 2016 · This document discusses tax audits in India. Auditors will assess the use of resources and funds against the intended objective, purpose, vision, and mission of projects, entities, or organizations. 4. A tax audit is a process of verifying and inspecting a taxpayer’s accounts to ensure compliance with the terms of the Income Tax Act. Definition and Extent of Tax Evasion By distancing effective payments from statutory taxes, tax evasion defines a specific revenue deficiency, known as the ‘tax gap’ (in the US, for example, the federal income tax gap has been estimated at 17 percent). effect of tax audit, the role of tax audit on compliance behavior of tax payers and the resource allocation for tax audit had a positive significant effect on tax compliance in MOR, Jimma Branch office. Tax non-compliance has been a challenge to the government and tax authorities in collecting as much tax as required for the nation. They conjecture and document a positive relationship between tax aggressiveness and external audit fees. Keep in mind, that the purpose of a tax audit is to guarantee precision and adherence, not to provoke unnecessary anxiety. Occasional tax audits: Not all tax audits are conducted according to a set schedule and authorities may conduct occasional audits in response to specific events - such as the discovery of discrepancies in a tax return or other unusual financial activity. Department of the Treasury and enforces and administers federal tax laws, processes tax returns, and completes audits. e. is an Prepaid Audit Defense Pay one low fee to defend your tax return in the event of a future audit. Methods vary for selecting a business or individual to audit. It first discusses what methodologies and data have facilitated these contributions, and then presents critical summaries of what has been learned. Firms can utilize tax accounts to engage in earnings management, producing information asymmetry among managers, investors, and auditors. We observe information about which firms were selected into tax audits or examinations as compared with firms not selected for the routine check. Therefore, materiality is the most critical element of an audit which drives the way an audit is planned and also the manner in which it is performed. The state tax audit is an independent, fair and reliable analysis, evaluation and verification of compliance with the principles of cost Nov 25, 2021 · A tax audit involves the examination of a taxpayer’s tax . Formation of a Review Group Oct 8, 2023 · The Laffer Curve illustrates the relationship between tax rates and tax revenues. Recently, the number of tax audits has only Definition: A tax audit is the official examination or audit of the tax department of the tax return that declares by taxpayers as required by law. We help you understand and meet your federal tax responsibilities. Assist companies file tax and prepare for audits. Before initiating a tax audit, the tax authorities generally are required to notify a taxpayer of the start date, time and location of the field audit, and the tax items and period to be audited. Generally, tax audits start at the point the last audit ended, hence a tax audit cannot be carried out on previously SIRS audited financial statements unless new information is discovered, at which point, the SIRS should consider conducting a tax investigation. Tax Audit- Definition A check, review, verification, or examination of a record, transaction, account or other item is referred to as an audit. 10. Jul 23, 2013 · Audit Committee How to Choose An Independent CPA/Auditor How to Control Annual Audit Fees Managed Sales And Use Tax Audit Programs. If the IRS has selected your tax return for an audit, you’ll receive a notification Sep 9, 2023 · Income Tax Audit. The role of tax administrations is to collect the revenue that helps to pay for public spending by governments. II. This system can greatly simplify the tax code, making it easier for individuals and businesses to The tax audit It is a process that consists of obtaining and evaluating evidence about the facts related to acts of a tax nature. has not charged tax and does not have a completed certificate on file: advise the vendor to get a certificate as soon as possible. In order to achieve the above objective, an auditor . Sales tax/VAT – an indirect tax on the sale of goods. 3. For example, higher taxes on carbon emissions will increase cost for producers, reduce demand and shift demand towards alternatives. This might include support for education, welfare, pensions, health services, transport infrastructure and defence, among many other areas. The study specifically sought the effect of Probability of being tax audit, perception of government spending, Dec 13, 2022 · 2. Finding the revenue-maximizing tax rate is a complex challenge for policymakers. 1. Sep 14, 2022 · Overall, the policy implications of behavioural economics on tax audits are in striking. Dec 6, 2019 · Tax avoidance can range from reduction of the corporate tax burden by legitimate use of tax rules to violation of tax laws. The OECD produces internationally comparable tax data, analysis and policy advice with the aim of helping governments around the world to design and implement effective, fair and efficient tax systems to foster resilient, inclusive Feb 3, 2025 · Limit for Income Tax Audit. In this chapter we organize, explicate, and evaluate the modern literature that Mar 1, 2022 · To investigate the effect of audit effectiveness on post-audit tax compliance in greater detail, we next analyze how audit effectiveness affects changes in the reporting compliance of audited taxpayers relative to changes in the reporting compliance of unaudited taxpayers, by estimating several variations of the following difference in This paper reviews recent economic research in tax compliance and enforcement. Following a period of Feb 4, 2020 · Tax audits, audit rates and prior audit experience have been ambiguously discussed in relation to tax compliance. Forensic Audit Definition. assess the tax in the vendor's audit as tax collected not remitted. Three main types are external audits, internal audits, and IRS audits. The willingness of the taxpayers to follow the rules is key to ensuring that the govern has the money to fund the different welfare schemes, operate public institutions Jan 1, 2019 · Accordingly, taxes and by extension tax systems fulfil a crucial role in the generation and subsequent use of state revenues as well as in the implementation of national economic policy (Mokr y management. Higher income tax can enable a redistribution of income within society, but may have an impact on… Feb 1, 2025 · Signatory auditors have incentives to curb tax aggressiveness because it is associated with adverse outcomes, including earnings management, fraud, scrutiny from regulators, poor earnings quality, audits by tax authorities, financial reporting opacity and misstatements, and higher crash risk. The impact of audits critically depends on a properly designed audit selection strategy focused on high-risk taxpayers to pro-vide the most cost-effective outcome. Since it is a consumption-based tax, it doesn't discriminate between different types of businesses, ensuring that all businesses are on an equal footing, regardless of their size or the nature used multiple regression analysis and descriptive statistics to estimate the relationships between type of tax audit and frequency of tax audit as independent variable, and tax compliance as dependent variables. In some jurisdictions, certain companies are required to have regular tax audits, while in other jurisdictions, balloting systems randomly select companies for a tax audit. To help clarify some of the terms and phrases, we’ve provided this glossary. 15-- Mar 31, 2025 · What is a Tax Audit? Tax audits come in various forms, conducted under different legal frameworks like statutory audits for companies under corporate laws, cost audits, stock audits, and more. Tax audits can be triggered by red flags in tax returns A Tax Return is a formal statement filed by an individual or entity that details income, expenses, and other pertinent tax information to a tax authority. How does the CRA choose a file for an audit? The CRA chooses a file for an audit based on a risk assessment. Jan 22, 2019 · Tax audit Advance notice. It ensures that taxes are calculated correctly, and helps authorities detect any discrepancies or fraud. Similarly, within the realm of income tax, there exists a specific type of audit known as a ‘Tax Audit’. Audits typically follow a 5-stage process. Oct 7, 2021 · What is Tax Audit? A tax audit is an examination conducted by a financial agency that oversees the compliance of all tax-paying entities. In this paper, we endeavor to synthesize the major findings of tax avoidanc Tax compliance definition refers to the decision of taxpayers, including companies and individuals, for example, salaried persons, to abide by the tax laws of any given nation. If the concerns in your filing are too complex for the simple solution, an office companies conducting business in multiple states are now spending, on average, $106,000 annually on state sales tax audit, compliance and assessment costs, while 82% of all multistate businesses reported being audited at least once in the past year. Risk-Based Country Audits: Approaches and Country Experiences. Aug 2, 2024 · In-audit expansion tends to happen if something on the return stands out — or if something comes up in the audit meeting that warrants adding on more audit issues. Our results show that standard enforcement variables like audits (including Auditing or Audit is the analysis of different books of accounts by an independent individual called “Auditor”, pursued by personal checking of stock to make sure that section of the organization is following chronicle system of reporting transactions. Internal Audits. contrast to those of the economics-of-crime models. Feb 21, 2025 · The suggestion to expand the definition of “accountant” under the new Income Tax Bill has met with strong opposition from ICAI, a position that aims to preserve the integrity and reliability of financial audits in the country. and Knechel (2014) examine whether corporate tax aggressiveness affects audit production. What is a tax audit? By the IRS definition, a tax audit is “a review/examination of an organization's or individual's accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct. VAT is designed to be neutral and equitable. Audits happen to individual taxpayers and businesses. 8 for complete discussion and examples. Different countries and different jurisdictions may have different laws and requirements due to the tax audit process. Flat tax is a taxation system that applies a single constant tax rate to all levels of income. The auditor should compare the tax returns and payments with the finance of the audited entity to determine if everything is in order. Income The tax return under audit should be compared to the prior and subsequent year returns. ” What does this mean in layman’s terms? A quick definition of tax audit: A tax audit is a review of an individual or organization's tax return by the Internal Revenue Service (IRS). Offer recommendations on proper tax filing and reporting. The primary purpose of an income tax audit is to verify that the reported income, deductions, and credits are accurate and comply with tax laws. The researcher Apr 1, 2025 · The Internal Revenue Service (IRS) is part of the U. Statistically, Bloomberg notes that audits happen in fairly small numbers. Let us emphasize from the outset that the tax gap is not equal to the amount Definition: Value for money audit is an independent examination of an audit to assess whether the use of funds or resources is at the economy, efficiency, and effectiveness. Excise duties – taxes on alcohol, tobacco, petrol. It analyses the role and functions of taxes and tax audits with special focus on sustainable development, considering not only the fiscal functions of taxes but also their economic, social, and environmental effects. Sep 1, 2023 · The economics-of-crime literature, stemming from the study by Allinhgam and Sadmo (1972), identifies audits as a useful instrument in coping with tax evasion. Income tax – a percentage of income. This kind of audit service […] Mar 1, 2024 · As audits of public companies are labor intensive, require a variety of team members, and involve year-round work, practitioners and academics have increasingly focused on identifying audit production factors that drive audit quality. Internal auditors are appointed by the corporation or entity for which they conduct an audit, and the resulting audit report is presented directly to the management and the board of directors. 1 Audit activity could raise tax revenues through the assessment of additional taxes, interests and penalties on audited taxpayers, the so-called direct effect. During the audit, the IRS may examine the taxpayer's Sep 17, 2024 · Tax Audit Definition and Explanation. f. Definition of Tax: “Tax is an obligatory contribution (Financial charge) from the Person (individual, company, firm, and others) to the government to meet the expenses incurred in the common interest of Society. It conducted by authorized personnel from the tax authority, targeted at individuals, businesses, or other entities. collected state tax but not the appropriate local taxes: verify that the state tax has been remitted. vza szfpsk jus zngsri fxcm uke qxctdg tfkhp lnkcu srx scznzxw synn xdqk zggox acyqe