Definition

Noun: A tax system is the complete set of laws, regulations, administrative procedures, and institutions established by a government to levy, assess, collect, and enforce the payment of taxes from individuals and businesses.

Usage

The term tax system refers to the entire framework governing taxation within a jurisdiction. It encompasses the rules defining what is taxed (e.g., income, property, sales), how tax liabilities are calculated, the procedures for filing returns and making payments, and the mechanisms for ensuring compliance and handling disputes.

Examples

• The complexity of a country's tax system can influence business investment decisions.
• Reforming the tax system to make it more efficient and fair is a major political challenge.
• Understanding the local tax system is crucial for anyone starting a business.

Advanced Usage

• "progressive/regressive tax system": Describes a system where the tax rate increases/decreases as the taxable amount increases.
  • A progressive tax system is designed so that those with higher incomes pay a larger percentage in taxes.
• "to navigate the tax system": To find one's way through the complexities of tax rules and procedures.
  • Small business owners often need professional help to navigate the tax system.

Variants and Related Words

• Taxation (n): The act or process of imposing taxes; the revenue raised from taxes.
• Tax code (n): The body of laws and statutes governing taxation.
• Tax administration (n): The government agency or department responsible for implementing the tax system.

Synonyms

• Fiscal system (in the specific context of revenue collection)
• Revenue system

Related Phrases

• Tax burden: The total amount of tax paid by an individual or entity.
  • The new policy aims to reduce the tax burden on middle-class families.
• Tax base: The total amount of assets or income that can be taxed within a system.
  • Broadening the tax base can allow for lower overall tax rates.

Noun

1. a legal system for assessing and collecting taxes