Tax, what is it?
Tax is the money gathered by the government and then redistributed to people living in the same city or country, or to build roads, schools, parks and places that we couldn’t do without. The amount gathered depends on how much money people have.
Tax is money paid by:
- people who work or receive money from elsewhere: this is called ‘income tax’;
- people who own a property: this is called ‘property tax’;
- businesses: this is called ‘corporate tax’;
- activities that have an impact on the environment: this is called ‘environmental tax’;
- the money or belongings that are left to you after someone dies: this is called ‘inheritance tax’;
- people who buy products or services: this is called ‘Value Added Tax’ (VAT).
How do taxes impact my life?
What happens if I don’t pay tax?
Some people try to escape paying the tax they owe. This is called ‘fraud’ and/or ‘evasion’.
Imagine if everyone in your class was asked to give one of their favourite games to the school, for all the children to play with. If you gave one of your games, but others in your class didn’t, what would you think?
When everyone pays tax, everyone benefits.
Would you want a life without tax?
The role of the European Union
The EU has 27 member countries. Each has a different history, geography and culture – and each has its own tax arrangements.
Even though it is your country that collects tax and tackles tax fraud and tax evasion, the EU helps by making it easier for countries to cooperate and exchange information.
Oliver would like to buy new shoes... he particularly likes the brand ‘Pike’.
Help Oliver make the right decision on where to buy his shoes.
-Listen to his friend and buy the shoes on the market stall Zora told him about?
I want to know more about tax!Ask your parents which taxes they pay and what they think about them. Identify activities or places paid for thanks to tax.
Which organisation collects tax money in your country?
Search on the Internet to find out. Look for some unusual past and present taxes from different countries!