The need for tax

All tax laws in the Western world and in Israel have a similar purpose – imposing an obligation to pay money on a legal entity (such as an individual, corporation, partnership, etc.), and collecting funds for the state treasury or other public body (such as a local authority in case of appreciation levy).

Tax is not a penalty and tax payment should not be treated as a negative event or a bad hit that should be suppressed. This is a vital recommended need without which a sovereign state cannot exist.

Judge Aharon Barak has already written that the purpose underlying tax legislation is the goals, values, and interests that the tax law is intended to fulfill.
In the immediate circle, the goal is to ensure income for the public authority’s treasury.
This is usually the immediate goal but it is not the only goal. Behind the immediate goal may be other goals of a social nature.

A tax is a social instrument through which society fights phenomena that are perceived as negative.
It also encourages actions to be encouraged and deters actions that society wants to prevent actions that are negative. The components of tax payment, develop natural and human sources, encourage industry, science, and research, and in addition brings about a redistribution of the means of production.
All of these, and many others, are the objectives of tax law.

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