These are laws levied by the government on the transactions that are economic in nature called as taxes. The laws are thereby called tax laws.
The major areas on which taxes are levied are:
- Income tax – It is levied on the earnings or income of people. The tax levied on the income of a business is known as Corporate tax. There are various slabs for taxes for various levels of income. They are calculated by different methods. They are charged on an annual basis. The income tax are of three types. They are:
- Progressive – It increases with the increase in the amount of income that can be taxed.
- Flat Tax – This term is referred to the tax rate which is constant even with the increasing income.
- Regressive Tax – Here the rate of tax decreases with the increasing amount of income.
Taxes are also levied on the wealth of a family, wealth as in household wealth.
- Capital gains – These are the taxes that are levied on the income that is earned from any investment.
- Retirement – The laws for a person who has retired but is earning through pension is different.
- Inheritance taxes – These are taxes on the income that you receive through inheriting some property.
- Gifts tax – These are taxes on the gifts that you may receive if it falls under the bracket of the level which is taxable for the monetary value it has.
- Consumption tax – This is the tax on the amount of goods that is spent.
- Corporation or partnership tax – This is the tax earned by the business in case of partnerships.
Though every layman should have the knowledge of taxes there are many people who take it as a course. They are taught about all the things that are related to taxes. In fact there are a number of colleges which teach taxation. Most of the law schools have taxation as a paper in their curriculum. A number of B-schools also teach taxation.
All these laws are guided by supreme court and people not following them have to face very strict punishments as penalties.
This law covers all the aspect of business and taxation to a certain extent. Like the liquidity and bankruptcy issue. They are all guided by the finance laws. Some other things that come under these laws are the business frauds and even the discrepancy in accounts.
These are strict laws and if not followed can result in very high penalties. There are several tax consultants who give advice on taxes. One can take their help to sort out their tax issues. For finance laws there are generally lawyers who specialize in corporate laws.