PRINCIPLES OF TAX COLLECTION

Principle of taxation according to expert opinion in order to achieve the purpose of taxation, some experts argued about the principle of taxation, among others:
Adam Smith, founder of the theory of The Four Maxims
1. According to Adam Smith in his Wealth of Nations with the teachings of the famous "The Four Maxims", principle of  taxation are as follows:

• Equality principle (principle of balance with the ability or fairness): tax collection by the state

   should be in accordance with the capabilities and income of the taxpayer. The state should

   not discriminate against the taxpayer.
• Certainty principle (the principle of legal certainty): all taxation should be based on the law, so

   that those who violate the law will be subject to sanctions.
• Principle Convinience of Payment (principle of taxation timely or pleasure principle): the tax

   should be levied at the right time for the taxpayers (the best time), for example when new

   taxpayers receive income or when the taxpayer receives a gift.
• Efficiency principle (principle of efficient or economical principles): the cost of tax collection

   cultivated as economical as possible, not to place a greater tax collection costs from the tax.

2. According W.J. Langen, principle of taxation is as follows:
• The principle of power to bear: the size of the tax collected should be based on the amount of

   income tax payers. The higher the income, the higher the tax is charged.
• The principle of benefit: the tax levied by the state to be used for activities that are beneficial

   to the public interest.
• The principle of welfare: the tax levied by the state is used to improve the welfare of the

   people.
• The principle of equality: in the same condition between taxpayers with one another should

   be  taxed in the same amount (treated equally).
• The principle of the smallest load: tax collection cultivated nicety (as low as) when compared

  with the value of the tax object so as not to burden the taxpayer.

3. According to Adolf Wagner, principle of taxation is as follows:
• The principle of financial politics: state withholding tax amount adequate to finance or

   encourage all state activities.
• The principle of economics: the determination of the tax object to be precise, for example:

   income tax, tax on luxury goods
• The principle of justice: generally applicable tax levy without discrimination, to the same

   conditions are treated equally as well.
• The principle of administration: a matter of certainty taxation (when, where to pay taxes),

   billing flexibility (how to pay for it) and the cost of taxes.
• Juridical principle: all tax levies should be based on the Act.