Tax farming in the context of "Financial management"

Play Trivia Questions online!

or

Skip to study material about Tax farming in the context of "Financial management"

Ad spacer

⭐ Core Definition: Tax farming

Farming or tax-farming is a technique of financial management in which the management of a variable revenue stream is assigned by legal contract to a third party and the holder of the revenue stream receives fixed periodic rents from the contractor. It is most commonly used in public finance, where governments (the lessors) lease or assign the right to collect and retain the whole of the tax revenue to a private financier (the farmer), who is charged with paying fixed sums (sometimes called "rents", but with a different meaning from the common modern term) into the treasury.

Farming in this sense has nothing to do with agriculture, other than in a metaphorical sense.

↓ Menu

>>>PUT SHARE BUTTONS HERE<<<
In this Dossier

Tax farming in the context of Edict of Gülhane

The Gülhane Hatt-ı Şerifi ("Supreme Edict of Gülhane") or Tanzimât Fermânı ("Imperial Edict of Reorganization") was a proclamation by Ottoman Sultan Abdülmecid I in 1839 that launched the Tanzimât period of reforms and reorganization in the Ottoman Empire. It is named after Gülhane Park, where the edict was first proclaimed. The 125th anniversary of the edict was depicted on a former Turkish postcard stamp.

The proclamation was issued at the behest of reformist Grand Vizier Mustafa Reşid Pasha. It promised reforms such as the abolition of tax farming, reform of conscription, and guarantee of rights to all Ottoman citizens regardless of religion or ethnic group. The goal of the decree was to help modernize the empire militarily and socially so that it could compete with the Great Powers of Europe. It also was hoped the reforms would win over the disaffected parts of the empire, especially in the Ottoman controlled parts of Europe, which were largely Christian. At the time of the edict, millets (independent communal law-courts) had gained a large amount of religious autonomy within the empire, threatening the central government. This edict, along with the subsequent Imperial Reform Edict of 1856, was therefore an early step towards the empire's goal of Ottomanism, or a unified national and legal Ottoman identity. It was published in the Takvim-i Vekayi in Ottoman Turkish. In addition, it was published in Greek and French, the latter in Le Moniteur ottoman, and François Alphonse Belin, a dragoman, created his own French version, published in the Journal Asiatique.

↑ Return to Menu

Tax farming in the context of Gracchi

The Gracchi brothers were two brothers who lived during the beginning of the late Roman Republic: Tiberius Gracchus and Gaius Gracchus. They served in the plebeian tribunates of 133 BC and 122–121 BC, respectively. They have been received as well-born and eloquent advocates for social reform who were both killed by a reactionary political system; their terms in the tribunate precipitated a series of domestic crises which are viewed as unsettling the Roman Republic and contributing to its collapse.

Tiberius Gracchus passed legislation which established a commission to survey Roman public land, reassert state claims to it, and redistribute it to poor rural farmers. These reforms were a reaction to a perceived decline in Italy's rural population. A decade later, Gaius Gracchus' reforms, among other things, attempted to buttress Tiberius' land commission and start Roman colonisation outside of Italy. They also were far more broad, touching on many topics such as assignment of provincial commands, composition of juries for the permanent courts, and letting of state tax farming contracts. Both brothers were killed during or shortly after the conclusion of their respective tribunician terms.

↑ Return to Menu