(i) Proportional Tax and Progressive Tax:

• Proportional Tax: A tax system where the tax rate is fixed, regardless of the amount of income earned. Everyone pays the same percentage of their income. Example: a flat tax rate of 10% on all taxable income.
• Progressive Tax: A tax system where the tax rate increases as the income level rises. Higher income earners pay a higher percentage of their income in taxes. Example: personal income tax with multiple tax brackets.

(ii) Direct Tax and Indirect Tax:

• Direct Tax: A tax that is paid directly to the government by the individual or organization on whom it is imposed. Examples include personal income tax and companies income tax.
• Indirect Tax: A tax that is collected by an intermediary (such as a retailer) from the person who ultimately bears the tax burden (the consumer). Examples include value-added tax (VAT) and customs duties.

(iii) Statute Laws and Case Laws:

• Statute Laws: Laws that are enacted by a legislative body, such as Acts of Parliament. These laws are written and codified in legal documents.
• Case Laws: Laws that are developed through judicial decisions or judgments in court cases. They establish legal precedents that may be used to interpret statute laws.

(iv) Franked Investment Income:

• Franked investment income refers to dividends received by a company that have already been subject to withholding tax at the corporate level. Such income is considered “franked,” and the company receiving the dividend does not pay additional tax on it. The withholding tax deducted serves as the final tax.

(v) Taxes Collectible by Local Governments:

• The local government is responsible for the collection of certain taxes, which include:
  1. Tenement rates.
  2. Shops and kiosks rates.
  3. Liquor licensing fees.
  4. Market taxes and levies (excluding any market where state finance is involved).