CHAPTER ONE INTRODUCTION
1.1 BACKGROUND TO THE STUDY Taxation is one of the oldest economic phenomena by which the cost of providing essential services for the generality of a given set of people within a geographical area is funded. In some countries, taxation is as old as their history while in others taxation predates their existence. In the early days of civilization, biblical and pre-biblical days, taxes were collected to maintain the kings/queens, provide security and fight wars. It could be direct surcharge on the citizens of the kingdom or empire, or tributes paid by “conquered” to show their unflinching loyalty to conquerors. The form of taxes did not necessarily depend on richness or the ability to pay concept. There was, of course no record of accountability except the archaeological findings about the Sumerian civilization of more than 500 years ago (Legislative Analyst, 2001).
