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Taxation is part of public finance that deals with the means by which the government raises revenue from public by imposing taxes by means of collecting money which is later used to provide public goods and the services to its citizens. Various government projects are funded through public revenue, which is collected through local government. The law requires that locals pay revenue inform of license of operating business, as well as income tax that is deducted from salaries and wages of employees. Thus, taxation is the revenue raising activity of the government. Taxes are among the key sources of public revenue. The various kind of taxes are the income tax which is imposed on annual gains earned by individuals, limited companies, businesses and other organizations, value added tax imposed on sale of commodities, turnover tax charged on income or receipts, sales tax imposed on sale of commodities produced locally or hose imported and targets luxury commodities, custom and excise duty imposed on import or export commodities. It is a voluntary payment by the citizens which are well elaborated by the tax facts which provide information for citizens, policy analysts, legislators and the press. The data is collected from a number of sources, which include committees on taxation, services of internal revenue and the congressional budget office among others (Bailey and Walter 34).

The taxpayer can, however, enjoy goods or services provided by the government like any other citizen without any preference or discrimination. The tax system has got various features which include tax authority, tax and the taxpayer. The tax authority has the power to impose tax e.g. the central government or local authority. The tax authority has the power to enforce payment of taxes. An example of one tax authority is the Tax Authority PC a company that that offer consulting services and tax accounting services for businesses and individuals. It came into force in Troy in the 1992 November before the office were relocated to China Township.

Another example of a tax authority is the revenue authority a tax collection agent of formed July 1, 1995 to enhance tax collection on behalf of the government. These tax authorities is comprised of both primary and secondary sources laws issued by the treasury department, congress or internal revenue service Primary authority is an element of the federal tax. The government legislative, administrative and the judicial branches are the one comprising of the primary authority in the form of statutes, treaties, regulations and judicial decisions (Galindo 67).

The government legislative branch established by article 1 of the constitution consist of the House of Representatives and the Senate, the administrative primary source measures the pretax deductions from income tax for enterprises, provision of the issues regarding provisional regulations, resource tax on payment and collection of social insurance fees decree the judicial sources consist of collected ruling of various courts on federal tax matters.

Primary authority carries much great precedential weight than secondary authority. The secondary sources consist of unofficial publication such as treaties, tax services, and periodical literature Secondary authority is an element of tax law that was issued by scholars. It is an interpretation of the tax law issued by the principal authority. Secondary authority is imperative in finding, evaluating and analyzing primary authority. The difference between the secondary and primary authorities is very important because of IRC 6662 which imposes a penalty on substantial understatements of tax except where taxpayer has substantial authority for position taken on return. The checkpoint is commercial tax service, a specialized legal research and federal tax research, earnest and young annual tax guides, and internet searches.

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