Taxation Project Dissertation Example | Topics and Well Written Essays - 5500 words

Taxation Project - Dissertation ExampleDue to changes in scotch conditions, countries have been forced to review their VAT system so as to ensure economic stability and economic development sustainability. The United Kingdom is genius of the countries that have well established VAT system. In the recent past, the UK government has increased its VAT rates as a way of generating more revenue enhancements to stomach the ever increasing expenditures. Notably, this economic policy has had far-reaching effects on businesses and end consumers. This research paper examines the effects of increasing VAT rates in the country. display panel OF CONTENTS Chapter 1 adit5 Background of VAT system in UK5 Research Objectives and Aims6 Chapter 2 LITERATURE REVIEW.8 trigger.8 Fluctuations of VAT in UK.9 Effects of Increase in VAT rates in UK11 An increase in Consumer Price Index UK..12 Tax nonpayment..12 Increase in compliance cost.14 Increase in cost of Living among the general population15 Lo wer levels of growth in the sell sector..16 Other Effects...16 Summary of Previous Research..17 Chapter 3 METHODOLOGY...18 Primary Research18 unessential Research....18 Research Approach.....19 Questionnaire used for the Research Study....20 Critique of Methodology20 Chapter 4 ANALYSIS AND FINDINGS..21 Chapter 5 CONCLUSIONS AND RECOMMENDATIONS..24 REFERENCES..27 APPENDIXES29 Chapter 1 INTRODUCTION Background to Value Added Tax (VAT) in the UK According to Adam and Browne (2009), value added tax (VAT) and income tax contribute more than two-thirds of total tax revenue in the United States, the UK, Canada and in other countries around the world. The value added tax is a proportional tax paid in gross revenue. It has been utilised as a mechanism for taxing goods and services consumed within a countrys economy. This is a consumption tax which is distinct from other consumption taxes which include sales and income taxes. VAT has become an important source of revenue in most countries. In the United Kingdom, the national government has been subjected to a great deal of jam to increase its revenue to be used to facilitate balancing of the budget. In order to meet these demands, the state has resorted to VAT as the primary means of raising substantial revenues. Like in most countries around the world, UK government collects VAT at every stage of economic value addition process