The canon of equality states that there should be justice, in the form of equality, when it comes to paying taxes. It is one of the fundamental concepts to bring social equality in the country. This is because the amount of tax should be in proportion to the abilities of the taxpayer. What equality really means here is that the rich people should pay more taxes and the poor pay less. The word equality here does not mean that everyone should pay the exact, equal amount of tax. But what do we mean by “equality” and “equity?” For sure Adam Smith’s concept was clear from an economist’s perspective. Interestingly enough, the first canon is “equality.” And that is somewhat the theme of the 51st CIAT General Assembly. Although these canons of taxation were presented a good while back, they are still used as the foundation of discussion on the principles of taxation.Īdam Smith presented 4 canons of taxation, which are also commonly referred to as the Main Canons of Taxation: While taxation has been around for a good number of centuries, the canons of taxation were first presented by Adam Smith in his famous book “The Wealth of Nations.” These canons of taxation define numerous rules and principles upon which a good taxation system should be built. The theme for this year’s meeting will be “A dvances of the tax administrations towards greater taxpayer equity by improving effectiveness and efficiency.” In two months, the 2017 CIAT General Assembly will be held in Asuncion, Paraguay. “The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities.” (Adam Smith, 1776)
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