Which of the following is NOT a basic principle of taxation?

The principle that is NOT a basic principle of taxation is complication. The fundamental principles of a good tax system typically include equity, neutrality, and predictability, all of which aim to create a tax structure that is fair to taxpayers, does not distort economic decisions, and allows individuals and businesses to plan for their tax obligations with certainty.

Equity or fairness refers to the idea that the tax burden should be distributed fairly among individuals, based on their ability to pay. Neutrality implies that taxes should not influence economic decisions, meaning that the tax system should avoid creating incentives or disincentives for certain behaviors. Predictability allows taxpayers to understand their financial obligations in advance, supporting effective financial planning.

In contrast, complication does not represent a fundamental principle of taxation. A complex tax system can lead to confusion, increased compliance costs, and may disproportionately affect those who may lack the resources to navigate such complexities. This complexity is often viewed as a negative attribute in a tax system rather than a guiding principle. Thus, complication stands out as the choice that does not align with the core tenets expected in a fair and effective tax system.