Which Individuals are Meant to Make Tax Returns?
Taxes are charges made by the government in place to the citizens of a certain age to fund its expenditures. Paying of these taxes is a law and failure to pay them at the right time is a punishable act. These funds go into funding government projects like infrastructure, public works, military works and all other all activities involved in running a government.
The expenditures should be able to be at par with the taxes otherwise a government goes into debt. A tax return has to be made when one wants to pay the taxes. To help individuals in knowing the amount of tax that they should pay, the different taxing authorities in different countries prepare a tax return form. These forms are mostly found in the different offices, and also some can be downloaded from the internet.
The tax returns enable the government to know the amount of wealth and debts an individual has. After one has been issued a national identification and can be referred to as an adult with an income then one has to file a return. It doesn’t matter the kind of occupation one does, whether private, public or self-employed. A penalty is given if one delay in making the returns before the deadline.
There are a variety of taxes that an individual can make a return for. First, we have the income the taxes, which are meant to be imposed on people with the income they get. This is mostly done on the profits which is the taxable income.
The employment taxes happens to individuals on a payroll. This is done by getting a certain percentage of the salaries paid and it involves both the employers and the employees. Pay as you earn is a deduction that employees get as part of these payroll taxes. We also have the taxes that an employer pays to cater for employing people from his or her own funds based on the amount of the employees’ wages.
We also have the statutory excise tax which is an inland tax on the production of goods for sale within a certain country. The excise taxes are different from the others like the value added taxes and are imposed separately.
There is also a tax paid in the transfer of a title to property which is referred to as the transfer taxes. This involves areas like the real estates and in shares where registrations of formal agreements have to be done and also a stamp duty.
To avoid the extra charges the defaulters pay, once you know the kind of return you are meant to make, it is important to do it on time before the deadline.