The word tax does not go well with most people. When you mention the word tax most people are afraid and in the real sense do not like filing their taxes. Tax is a compulsory amount that is paid to the government as a percentage of your income. The income may come from running a business or from earning as salary. It is compulsory for every citizen to pay their taxes on time and make tax returns. Taxes are calculated by tax calculators and one can go online and find free online tax calculator that will help in calculating the amount of tax one should pay. Accountants are responsible for calculating and deducting taxes from employees salaries in organizations. This paper will discuss the importance of filling taxes.
Filling taxes is good for both individuals as well as businesses since one will be able to take loans in banks and other financial institutions. One of the requirements of applying for loans is to clear yourself with the tax authority.
Filing taxes enable one to claim tax refund. Tax refund is claimed in case one had already been taxed in advance. This is only possible if you file your taxes. One will have to forgo the tax refund if they fail to file the taxes. This means that one loses money inform of tax refund.
Filing taxes will make it possible to carry the loses forward by adjusting capital gains from previous years. Losses are not carried forward due to the failure to file taxes. Sometimes embassies require one to provide a certificate to show you have been filing taxes in order to get a visa to travel oversea. In such cases, you will not be able to travel without a certificate to show that you have been filling your taxes.
Proof that you file your taxes is sometimes needed if one wants to get a high profile job. One loses the opportunity to get the job due to lack of proof that you file tax returns. This is one of the reasons why you must always file your taxes. Government tenders go to the people who are filing their taxes. This means filing tax is important for the companies that are looking to conducting business with the government. One is required to produce tax receipts for previous years. This is to show proof that you can be able to handle the amount of business the government gives you. Someone’s financial position can easily be assessed by their tax receipts.
Filing taxes will help when you want to buy a high life cover. When buying a high life insurance cover it is a requirement to provide tax receipts. This is to let the company know how much money one makes in a year. Several things are important when one is getting a high life insurance policy but the most important is how much money one makes. If one does not have a high income which will be shown by tax receipts then it means they do not require high life insurance.