SCHOOL OF LAW
ASSIGNMENT 1
COMPUTER NUMBER: LLB1009
COURSE: TAX LAW (L360)
LECTURER: MR. P. AKAPELWA
DUE DATE: 14TH MARCH, 2014

The research and documentation of this assignment was done by the author;
Signed;

INTRODUCTION
Re-alignment or Re-pricing being a reason why taxes exist, can be defined as a tool bestowed upon governments that allows them to manipulate the behavior of its citizens using taxes. This implies that the governments of any state can influence the economic, social and even environmental sectors of their respective countries through taxes. Neutrality on the other hand is one of the several qualities of a good taxation system which provides that a tax should not alter or affect the economic behavior of the citizens of any given country.
The objective of this document thus is to discuss the two above mentioned concepts of taxation and the way in which they can be reconciled in light of tax policy.
RE-ALIGNMENT: Definition and importance
Taking a detailed approach towards Re-alignment, it has been readily mentioned that it is one of the very reasons why tax exists. Other reasons include: 1) Revenue collection - in order to function effectively, a country, like any other institution needs a source of income. Thus a government is permitted to collect tax from various sources ranging from goods and services to profits made by companies operating within the country. Taxes collected by the Zambian government compose more than 50% of that country’s annual budget and this revenue aids in funding many of the country’s projects and regular operations. 2) Re-distribution of wealth – is the concept that provides for equity in society. Modern societies are alive to the fact that higher classes make more money than lower classes and so taxes exist to redistribute wealth to those in need of help such as the elderly and disabled. Taxes are imposed