Dalton discusses the economic effect of taxation under the following three heads: 1. Effect of Taxation on Production, 2. Effect of Taxation on Distribution 3. Other Effects. 1. Effect of Taxation on Production: According to Dalton effect of taxation on production can be in the following three ways: (a) Effect on ability to work, save and invest. (b) Effect upon [...]
The Meaning of Impact, Incidence and Shifting: When a tax is levied, its first impact will be felt by the person, who actually makes the tax payment. He may be an income-receiver, property owner or a buyer or seller of goods arid services. He may bear the tax himself. In some instances, he may be able to shift the burden [...]
In this article we will discuss about the limitations of double tax treaties. (i) The other Contracting State does not exercise its allocated rights to tax under a treaty, or (ii) A tax treaty gives the State the right to tax, but no tax is due under its domestic law. Only the domestic tax law in each country has the [...]