Non-Filled Tax Returns
The government depends on the taxation as primary source of income.Tax is a financial obligation imposed by the government on its citizens.The tax generated is used for development purposes and to pay government workers.Getting targeted amounts of tax has been limited to controversies that surrounds the policies.The problem is brought by citizen who try to evade paying their taxes.Before digging deeper to the issues affecting the sector lets first highlight the various types of taxes and measures put in place by the government to ensures the compulsory financial obligation is met by everyone.
Payroll tax is obtained from salaries of employees.The tax obtained is wholly dependent on the employees salary.Taxation criteria is provided by the government.Employers obtain taxation ratios from the government.It is among the main source of income for the government.The most common taxation in business Is the V.A.TGoods and services are taxed to obtain revenue.The tax is collected at every stage of production to consumption of products.Some goods are exempted from this kind of taxation.
Goods ferried across borders are obliged to custom duties.The percentage of the total value of goods is taxed.The percentages are provide by government institution which are mandated to monitor rates.This rates are determined by the value of goods .Custom duties are aimed to protecting the country’s economy by reducing importation of goods.This gives an opportunity to local manufacturers to market their products.The taxes limit the amount of goods ferried to the country.
Those are the most common types of taxes.The many taxes imposed on goods and services at times makes it challenging for business men to meet the obligation.Some are tempted to evade taxation by using fraud methods especially in smuggling goods across borders.Making the states to establish policies to govern taxations.They are meant to give the methods of taxations.They include penalties or failing to pay taxes.Everyone is obliged to file returns.
The government has a financial year under which the budget is due.At the end of each year the government makes a budget.Returns on taxes are done by every citizen.This helps the government to predict the amount of revenue they will be able to collect within the financial year.One can file their returns on government portals.
Consequences for failing to file returns maybe harsh depending on the taxation laws.You can be subjected to heavy penalties or even sentenced to jail term.The economy depends on your tax as citizens.Insufficient revenue may limit allocation of economic resources leading to underdevelopment.Econmoy depends on the tax generated.Limiting the amount of revenue by failing to file your returns makes the country to prone to economic backlash.They influence incentives given to investors limiting growth.Finally file your return to avoid economic effects.