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CHAPTER II THE TAX SYSTEM 2.1. The concept of tax system 2.1.1. Tax Levies Definition and content of tax levies Technical elements of the tax levies Classification of tax levies Techniques for assessing tax levies 2.1.2. The taxation mechanism 2.1.3. The tax authorities 2.2. Classification of tax systems 2.1. The concept of tax system The tax system is the result of thought, decision and action of the human factor, being originally created to meet financial objectives and later were added and some economic-social objectives. In legal doctrine, the tax system is considered as consisting of “all taxes and fees from individuals and legal persons supplying public budgets” 1. Another approach on the tax system focuses on defining elements of a system in general and considers the tax system in terms of relations between elements of the composite, as “the tax system contains a set of concepts, principles, methods, processes regarding a lot elements (tax base, tax rate, tax subjects) related as a result of design, regulation, assessing and collection of taxes.” 2 The tax system is thus a complex system, including in its structure the following three components:   all taxes, fees and other tax revenues that the State, through its specialized institutions, receives according to the tax legislation; taxation mechanism that includes the methods, techniques and tax instruments needed to assess and collect taxes, fees, contributions and other sums owed to the general consolidated budget;  tax authorities, without which the tax system would remain inert, being the engine for implementing a tax mechanism.

1 Condor I., Drept financiar, Editura Regia autonomă Monitorul Oficial, Bucureşti, 1994, p.122; 2 Corduneanu Carmen, Sistemul fiscal în ştiinţa finanţelor, Editura Codecs, Bucureşti, 1998, p.22;

so that all natural and legal persons benefiting from public goods must participate.   tax is assessed on the basis of legislation. Timişoara. fees (charges) and contributions. Editura Orizonturi Universitare. according to the law. Enache C. meaning that any tax is levied only according to the law. the fees (charges). 3 Talpoş I. 2001. funds used to cover public expenditures to the benefit of all members of society.1. on the income or wealth of natural and legal persons.. meaning that the amounts paid by the taxpayers do not have a direct and immediate benefit to the tax payers.1. collection in cash being determined by the fact that public expenditure (covered mainly by collecting taxes) shall be made in cash.1.1. Definition and content of tax levies As a result of synthesizing the many concepts and approaches in theory and practice of taxation. p. non refundable. beside taxes. Tax Levies The tax levies are the total financial resources taken out by the state from the private sector. hold or produce goods. Finally. The tax levies include. through financial transfers in the form taxes.  tax is a non refundable levy. provide services or perform activities which. . “ A brief analysis of this definition allows us to easily detect the general characteristics of taxes:  taxes are basically a financial contribution.. contributing to the formation of the society's general funds. in order to complete the revenues needed to finance the public needs. defined as payments made by individual or legal persons for different services performed by public institutions. the tax was given the following definition3: “a type of tax levy in favor of the state without a direct and immediate compensation. the tax is due only for earned income and property held.25-26. to the formation of public funds. are taxable. 2. which means that the tax subjects (taxpayers) owe tax only if they earn taxable income as defined by law and when they purchase. for the goods that they produce or distribute or for services they provide. according to their income or wealth.TAXATION 2.1.  taxes are a compulsory contribution. Fiscalitate aplicată.

meaning that they are due and payable only by those asking for the fulfillment of some measures. charges are different from taxes. they are similar to taxes. Contributions are similar to charges since they appear in connection with a benefit. social and public) that the state provides to natural or legal persons compulsory. they must be paid when applying for an document or service to be performed by a state entity or public institution. To distinguish them from other types of contributions. Charges are very similar to taxes because both form public revenues that are collected throughout the fiscal year to the public budget. since the legal grounds and purposes are different. but are different from them by lack of voluntary commitment as they are not requested but are established by law. presenting the following characteristics:  random nature.e. However.TAXATION Taxes are paid by individuals or legal persons for certain acts performed or services provided at their request and for their benefit by certain state authorities.   are advance payments. public institutions or other persons treated as such. services or activities performed by state entities or public institutions. are unique in the sense that for the same act or service performed or rendered a person is liable for the tax only once. . they can be considered participative contributions. since the payers are participating to finance a service from which it is considered that they will receive a potential advantage. i. Since there in no equivalence between the benefits provided by the state and the value of the mandatory contribution. are imposed on taxpayers in order to cover the costs incurred by state or by public institutions for providing the services requested by individuals and legal persons. these are levied in connection to specific tangible benefits (economic. known as contributions.    certainty of paying subjects is conditional upon a request to provide a service or to perform a specific service by a public entity. taxes are a payment equivalent to the acts. namely the provision of services by state institutions. beside taxes and fees include a special type of levies. Unlike taxes. The tax levies.