How Does One Qualify to Make a Tax Return?
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. Government activities which involves infrastructure, public and the military works and all the government activities are funded by these taxes that people pay.
The government runs into debt if it happens that the expenditures are more than the taxes paid. A tax return has to be made when one wants to pay the taxes. Different taxing authorities in different countries prepare this form which is used in calculating the amount of taxes a person is meant to pay. A person is able to download the forms or even get them from the taxing authorities offices.
The tax returns enable the government to know the amount of wealth and debts an individual has. People with a national identification and can be referred to as an adult in a certain country, with an income, are meant to fill their returns. The kind of occupation one has does not matter, be it in private, public or even self-employed. The filing of these reports usually have a deadline and once you delay a penalty is given.
An individual may fall into the different kinds of returns that we have. 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 involves the employers and the employees and is usually done by getting a certain percentage of the salaries paid. Categorized into two, these payroll taxes have deductions that employees get from the salaries which is known as the pay as you earn (PAYE). 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.
The statutory excise tax is another one, which is an inland tax on the production of goods for sale within a country. The excise taxes are different from the others like the value added taxes and are imposed separately.
Lastly is the transfer taxes which are refers to the tax paid when an individual passes a transfer of title to property. 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.
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.
Source: Tax Return