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The Importance of Filing Tax Returns

The people in the country plays a huge role in boosting its economy by been tax compliant. It is the work of the government to collect levy from their citizens. Development of projects in the country is facilitated by the tax collected. Remunerations of the people employed to serve the public is funded by the taxes collected. The government has the mandate to improve and maintain the infrastructure. The cash used in the facilitation and funding of the development of infrastructure is acquired from the residents, business enterprises and tax compliant companies. Every year, the adults, business and legal companies should file tax returns every year. The annual earnings of various companies and institutions must be announced to the public. Making file returns are mandatory activity for citizens and businesses in many countries. This enables the government to control the economy.

There are many reasons why people evade paying tax. One of the reasons is because they run out of time. There are clear set deadlines by the government. In many countries, the returns are filed online through official websites of the taxation authorities. These online platforms may be closed before the citizens do the returns. Another reason is because some people want to evade filing costs. Some people also fail to file returns because of the fear of paying taxes. This actions affects the growth of the economy negatively. Therefore it is important to pay tax. The merits of filing tax returns are outlined below.

In many nations everyone regarded as an adult should make file returns. Heavy penalties hit those who fail to obey the dates and time to file their tax returns. Making tax returns before the deadline is always recommendable. Another advantage of filing returns is because it is a requirement by many banks and other lenders before they give you a loan. The financial institutions and micro-finance do not deal with people that do not pay tax. It is, therefore, good to file returns to enjoy loan benefits from them.

Make sure that you file your tax returns is clear indication that you are a responsible and accountable resident. Loyal patriots want their economies to grow. The loyal individual wants their country’s economy to grow strong, and they support it by paying tax and filing tax returns. They should be able to meet deadlines set by the government. A good citizen pays revenue without delays. Almost all countries have made illegal the act of tax evasion. Jail terms and other heavy penalties should be set for the individuals as well as institutions that are not tax compliant.

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October 31, 2016 | Category: Financial | Tag: