Question

The canon of certainty in taxation, as articulated by Adam Smith, implies:

A The tax rate must be fixed in advance and cannot be altered during the financial year under any circumstances Correct Answer Incorrect Answer
B The taxpayer must know in advance — with clarity and without ambiguity — the amount, timing, and manner of payment of tax, so as to plan economic activity and avoid arbitrary assessment Correct Answer Incorrect Answer
C The government must be certain of the revenue yield from a tax before levying it, using actuarial projections Correct Answer Incorrect Answer
D Taxes must be collected at a time most convenient for the government’s revenue requirements Correct Answer Incorrect Answer

Solution

Option (A) goes too far — certainty is about taxpayer knowledge, not rate immutability. Option (C) confuses taxpayer certainty (Smith’s meaning) with government revenue certainty. Option (D) describes the canon of Convenience.

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