1. A tax is money charged to a taxpayer, an individual or a legal entity, to support government spending and public expenditures. All countries have a tax system in place to pay for the functions of government. In terms of economics, taxation is the compulsory transfer of payment from households or businesses to the government. Taxes comprise direct and indirect taxes. Direct tax is paid to the government directly by the taxpayers such as income tax, corporate tax and property tax. Indirect taxes are levied on goods and services and these are transferable with consumers ultimately paying the tax. Examples of indirect taxes are Sales Tax, Value-added Tax, Goods and Services Tax and Customs Duties. The taxation process involves two primary players, taxpayers and the tax office. The taxpayer is responsible for paying taxes and the tax office is responsible for collecting taxes on behalf of the government.