To help in running a government, taxes are levies imposed on the citizens who have attained a certain age to fund its expenditures. This is a law that everyone should pay their taxes, and failure to do so is a punishable act. The taxation goes into funding activities that are involved in the running of a government in all the sectors.
The expenditures should be able to be at par with the taxes otherwise a government goes into debt. To pay this taxes, one has to file a tax return. Different taxing authorities in different countries prepare this form which is used in calculating the amount of taxes a person is meant to pay. The forms can be downloaded from the internet or even found in the different taxing authorities’ offices.
In making a tax return, the government is able to know about the individuals’ total income and the accrued wealth and debts. A person who is an adult according to a certain country’s identification and has an income then they are meant to fill a return. It doesn’t matter the kind of occupation one does, whether private, public or self-employed. The filing of these reports usually have a deadline and once you delay a penalty is given.
There are a variety of taxes that an individual can make a return for. Starting with the income taxes, these are meant to be imposed on people with an income. This is done on the taxable income which are the profits.
To the individuals on a payroll, we have the employment taxes. 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 duties are an addition to the other taxes like the value-added taxes.
When a title is transferred to a property, then a tax known as the transfer taxes is paid. Involved in this is the areas like the real estates and in shares where registrations of formal agreements have to be done and probably involves a stamp duty.
It is important to make the returns on time to avoid the charges done on defaulters and late payments once you know the kind that you are supposed to make.
Source: Tax Return