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Tax Collection Principle

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According to Adam Smith in his book Wealth of Nations quoted by Waluyo (2011), tax collection should be based on “The Four Maxims” as follows.

a. Equality

For the same circumstances or people who are in the same cases must be subject to the same tax.

b. Certainty

Tax determination is not determined arbitrarily. Binding rules General must be clear, and firm and do not contain double meanings or give opportunities for another interpretation.

c. Convenience

Tax payments should be made at a time that does not make it difficult for the Mandatory Taxes, for example when the Taxpayer receives income. Collection system This is also known as pay as you earn.

d. Economy in Collection

Economically, the collection fee should be relatively small compared to incoming tax money.

The Four Maxims is a fundamental principle theory which later developed and used as the basis for determining the criteria for a good tax system by many parties. Alley and Bentley (2005) in a publication entitled ”Remodeling of Adam Smith's tax Design Principles" collects some of the principal developments of Adam Smith as shown in the Table.

Table Remodelling of Adam Smith's Tax Design Principles


Alley, Clinton, Duncan Bentley. 2005. A remodeling of Adam Smith’s tax design.

Queensland: Bond University Publication.

Waluyo. 2011. Perpajakan Indonesia. Jakarta: Penerbit Salemba Empat.

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