Which Individuals are Meant to Make Tax Returns?
To fund its expenditures, the government in place imposes levies on citizens of a certain age in form of taxes. 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. 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.
In making a tax return, the government is able to know about the individuals’ total income and the accrued wealth and debts. 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.
There are different types of tax returns that an individual may fall in. 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.
We also have the employment taxes which is taxed on the 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. Categorized into two, these payroll taxes have deductions that employees get from the salaries which is known as the pay as you earn (PAYE). To cater for having employed someone; an employer also pays a certain amount of the tax depending on the employee’s 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.
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