The Basic Taxation Process starts with the establishment of the Republic of Ireland as a nation in the 17th century. It was a common practice for the English to establish a tax on Irish citizens to help fund the wars overseas. Ireland had to repay this tax to the English Crown every year. This tax was called the Duty and was imposed by the English King James II.
After World War I, representatives from Great Britain and the United States came to discuss ways that they could assist Ireland with their tax burden. At first, Ireland’s taxation system was based on tariffs and a tax on imported goods. In response to this, the Irish government changed the law and introduced direct taxes on its people. These taxes were known as Great Britain and the United States direct taxes, respectively.
The new system benefited both countries because it brought greater revenue for both the governments. Taxes on imports fell from a quota that was set by the English authorities to a single duty rate. This made goods available from all over Ireland to be sold under the same tax system. The duty on exported goods was also lower than that on locally produced items. Ireland began to receive assistance from Great Britain and the US in terms of the collection of its taxes. In addition to the above mentioned changes, an amendment was passed by the Irish government that allowed non-Irish citizens to become citizens of Ireland, thereby removing the last barrier to accession to the Union with England.
At this point, a new phase of the taxation process began. The assessment of tax liabilities was begun. The goal of this assessment was to see how much tax was realistically owed. The assessment of tax liabilities also included the collection of additional charges such as customs duty and other types of local taxes. All these charges were then assessed against the actual tax liabilities of the citizenry.
A final assessment of the actual tax liability was then made. The amount of tax owed was then collected from the citizens of Ireland through their respective tax payments. This was the end of the taxation process. Although the introduction of the Single Tax System did away with the need for a standard taxation process, a good way of ensuring compliance with tax laws is to collect all necessary information during the assessment process.
The introduction of the Single Tax System brought with it several new problems that had to be addressed. One of these was the loss of the internal revenue office in Dublin which was responsible for the collection of customs duties and other taxes. Many people blame the creation of the Single Tax system for the decline of the internal revenue department. Although there are those who agree that the Single Tax system was an ideal solution for the taxation process in Ireland, others believe that it was part of the reason for the rise of tax evasion. Regardless of these points, the basic tax structure has endured for over a hundred years and will likely endure for another one hundred years.