What does the organic criterion use to identify public finance?
The legal status of the actor.
Which author is associated with the public-power-prerogatives criterion?
M. Duverger.
What is political financial intermediation?
The reallocation of resources within society outside the market circuit.
What distinguishes formal sources of law from real sources?
Formal sources are techniques through which law is expressed; real sources are origins from which legal norms draw substance.
What does Burundi Constitution Article 70(3) establish about public charges?
Equality before public charges, with exemptions allowed only by law.
What does Burundi Constitution Article 164(5) reserve to legislation?
The definition of the tax base and rates of taxes and duties.
Which sources are normative internal sources of law?
The Constitution, laws, regulations, general principles, and contracts.
What does the non-interventionist conception limit the State to providing?
Order and essential public services.
What does classical public finance seek in budget size and composition?
A small budget consisting mainly of administrative expenditure.
What determines whether federated communities have genuine financial autonomy?
Whether they have real financial autonomy or depend on central-state subsidies.
What determines tax revenues and government borrowing possibilities?
Tax revenues depend substantially on economic conditions, and borrowing possibilities depend on the current economic situation.
How can public spending respond to inflation or weak economic activity?
It may be reduced to combat inflation or increased to stimulate economic activity.
What do tax systems reflect beyond abstract legal rules?
Countries’ social and political structures.
What does public finance study?
Public funds.
What governs public finances and private financial movements?
Public authority governs public finances; supply and demand in capital markets govern private financial movements.
What goal distinguishes public finance from private finance?
Public finance pursues the general interest, while private finance is oriented toward profit.
What is the primary purpose and basis of a tax?
A compulsory levy primarily funding public coffers, measured by taxpayers’ contributive capacity.
How does taxation express state sovereignty?
The state establishes taxes unilaterally and collects them by compulsion.
According to G. JEZE, how should public charges be distributed?
According to taxpayers’ contributive capacities.
What distinguishes a real tax from a personal tax?
A real tax concerns taxable matter, while a personal tax accounts for the taxpayer’s personal situation.
What is civil-law income?
A periodic monetary sum from a permanent source.
What kinds of income can fiscal autonomy include in taxable income?
Benefits in kind, capital gains, and occasional or accidental income.
What is capital for tax purposes?
Wealth consolidated in a taxpayer’s assets with some degree of stability.
How is a direct tax collected under the administrative criterion?
Through a nominative tax roll.
When is a tax indirect under the economic criterion?
When the legal payer can pass on the tax burden.
What kind of taxable matter does a direct tax target under the fiscal criterion?
Relatively stable taxable matter.
What is the purpose of tax liquidation?
To calculate the tax due to the Treasury from the taxable matter’s assessment and the tariff.
What does indicator-based assessment use as a sign of taxable matter?
An indicator external to the taxable matter.
How is a conventional tax assessment forfait established?
By agreement between the taxpayer and tax administration for a set period.
What does tax collection encompass?
All operations intended to obtain payment of the tax debt.
Who is the taxpayer in relation to an established tax?
The person against whom the tax is established and who must pay it.
How does withholding at source collect tax from someone other than the taxpayer?
The income payer withholds tax from the payment and remits it to the tax authority.
How is tax generally paid in Burundi?
In money.
How long after a tax return may tax or additional tax be claimed?
Three years from the filing of the return.
What payment deadline follows receipt of a tax reminder letter?
Fifteen days from receipt.
What does French tax litigation encompass?
Legal remedies resolving disputes arising from the application of tax law.
What does French tax-assessment litigation concern?
The merits or amount of the tax, or the regularity of the assessment procedure.
What must a taxpayer do before taking an assessment dispute to court?
Submit a written claim to the tax authority that assessed the tax within 30 calendar days of receiving the tax notice.
What payment is required while a French tax dispute is pending?
The taxpayer must pay 30% of the disputed amount, or the undisputed portion if it is greater.
What is a budget?
An annual forecast of state expenditure and revenue, adopted by Parliament in a finance law.
What did the French word “finance” originally refer to?
Payment.
What do French “finances” refer to?
The revenue and expenditure operations of legal persons.
Which 1971 work associates public finance with administering public persons’ financial activities?
F. Deruel’s *Finances publiques*.
Which 1977 work defines public finance through rules and operations concerning public funds?
P.M. Gaudemet’s *Précis de finances publiques*.
Which bases can identify public funds under the public-funds criterion?
Possession by a public body, an establishment’s administrative regime, or the funds’ origin.
What does Burundi Constitution Article 167 require the Finance Act to determine?
The State’s resources and expenditures for each year.
What does Burundi Law No. 1/20 of 20 June 2022 establish?
Budgetary principles and rules for public resources, expenditures, Finance Acts, control, and public-agent responsibility.
What right does Article 14 of the 1789 Declaration give citizens regarding public contributions?
The right to determine their necessity, consent, use, amount, tax base, collection, and duration.
What instruments does international financial cooperation use to address cross-border financial issues?
Bilateral or multilateral conventions.
Which events helped prompt State intervention in economic and social affairs?
The First World War and the 1929 crisis.
What characterizes interventionist public finance in industrialized capitalist countries?
A larger budget coordinated with economic, credit, monetary, and foreign-trade policies.
What is the primary purpose of taxes in interventionist fiscal policy?
To influence economic behavior.
What may interventionist budgets prioritize over budget balance during crises or recessions?
Economic objectives.
What characterizes a socialist economy?
Collective ownership of the means of production and authoritative economic planning.
What share of national income did the described USSR budget represent?
About 60%.
Which matters does the Constitution of Burundi place within the domain of legislation?
Tax and monetary systems, public resources and expenditures, and fundamental rules for voting finance laws.
What largely explains executive dominance in the British parliamentary system?
The executive’s control over the budget.
What helps explain the congressional character of the American system?
The United States president’s limited financial powers.
Which field of law governs the Ministry of Finance’s administration and tax litigation?
Administrative law.
Why can financial controllers influence public-service managers’ decisions?
Because of their financial responsibilities.
Why may a public accountant oppose measures that violate financial regulations?
Because of the accountant’s financial responsibility.
Why is tax collection difficult in economies with little diversification?
Limited trade makes tax collection difficult, and public resources are often insufficient.
What business change do governments encourage through taxation?
Modernization of businesses’ equipment.
What structural effect can public investment spending have?
It can transform economic structures.
What do budget-policy rules guide?
The legal preparation and execution of budgets.
How do functional budgets help political science assess education, research, or economic action?
They reveal the relative importance of each area.
What can the state compel regarding public revenues and expenditures?
The state can compel payment of public revenues, but not expenditures.
What form does private money take?
Claims representing private agents’ liabilities.
What does financial power measure for public bodies and individuals?
Their independence and autonomy.
From what source do public and private financial resources derive?
National activity.
What three stages do public and private financial management share?
Defining objectives and means, executing policy through revenues and expenditures, and closing the period to establish results.
What distinguishes voluntary contributions from taxation in financing public expenditure?
They involve no compulsion, and experiments with them have been disappointing.
What distinguishes a voluntary loan from taxation in its terms?
A voluntary loan is repayable and raises issues such as interest and guarantees.
For whose benefit are parafiscal taxes collected?
A public or private legal entity other than the state, territorial authorities, or their administrative public establishments.
How are parafiscal levies established compared with ordinary taxes?
Parafiscal levies are established by regulation; ordinary taxes are established by law.
What do social contributions secure for compulsory social-security affiliates?
Entitlement to benefits for illness, disability, old age, death, and occupational accidents.
What authorization do social contributions require compared with taxes?
They require no annual legislative authorization, unlike taxes.
Why is the insurance-premium theory of taxation rejected?
The state has functions beyond security and protects against disasters rather than indemnifying afterward.
Why is the tax-as-price theory rejected?
No correspondence can be established between each taxpayer’s tax and the services that taxpayer receives.
How does a public-service price differ from a tax in how it is collected?
A public-service price does not require compulsion and may be set by agreement or enterprise management.
How does a tax differ from a fee in its connection to a public service?
A tax or fee is collected on the occasion of a service, not as the service’s own object of collection.
What is a tax?
A compulsory monetary levy for public authorities on a beneficiary of an advantage connected with a public service, without necessary correlation to its cost.
How do social contributions relate to social-security benefits and covered risks?
They provide entitlement to benefits, but their amount is unrelated to risk exposure or equivalent to benefits received.
Under the contributive-capacity principle, which foreigners count as taxpayers?
Resident foreigners who participate in the state community through solidarity, regardless of their title of participation.
What is one disadvantage of real taxation?
Its narrow tax base can reduce yield.
What can particular income taxes differentiate by income type?
Rates, assessment methods, and collection methods.
Why is a tax assessed and paid from capital dangerous?
It destroys capital.
What was the purpose of a one-time crisis levy on capital?
To obtain an immediate sacrifice from the wealthy instead of borrowing.
What does a nominative tax roll record for each taxpayer?
The assessed taxable matter and corresponding tax amount.
Why are the tax on movable property and employment income taxes fiscally direct?
They apply to stable situations.
Which taxes in Burundi are collected through withholding at source?
Employment income tax, tax on securities, and various other levies.
How do payment deadlines differ between direct and indirect taxes?
Direct taxes traditionally allow payment delays, while indirect taxes are declared and paid simultaneously.
How long does the Commissioner General have to decide a tax claim?
Thirty days after receipt, extendable by an additional thirty days.
What conditions are required to suspend execution of a tax assessment?
At least one ground must appear serious, and execution must risk causing consequences that are difficult to repair.
What does the budget present in the material sense?
Revenue and expenditure forecasts.
Answer 62 questions on Public Budget Principles and Process.
1. How do the organic and material criteria differ when identifying public finance?
2. A private organization exercises powers of command in managing funds, while a public organization carries out a financial activity as a private person would; how does the public-power-prerogatives criterion classify these activities?
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