Importance of Filing Tax Returns
Property, estate, consumption, and income taxes are the four main types of taxes. When it comes to property taxes, you have to surrender a certain portion of the value of your property to the government. When a portion of your salary is deducted and paid to the government, we call that income tax. When goods and property from an estate are sold and the money paid to the government, it becomes estate tax. Consumption taxes are paid when products and services are purchased when goods are imported into the country, or through tolls for roads and bridges. There will be a need for extensive recording and auditing in order to get consumption taxes. There are taxes that are levied to discourage the consumption of some items. You may also find sin taxes to discourage the use of alcohol, tobacco, or services like prostitution. It is important to note that consuming such products can have negative impacts on human health.
Generally, there is a need for money to cater to the services provided by the government to the community. For the proper running of a community, there should be clerks, administrators, firefighters, and maintenance works. You should note that these people should be paid. Regressive tax is one that has a greater effect on the poor more than it has to the wealthy. The one that affects the wealthy more than the poor can be said to be progressive.
If you file your tax returns, it will not be hard for you to get a vehicle loan. Most of the banks require you to show them a copy of the returns in order for you to get a vehicle loan; failure to that you will not get it. Moreover, the copy can be of help especially if your loan application is rejected. Those people who get lower loan limits can use their returns to claim higher limits. Moreover, it is hard for you to claim any refund if you do not file your tax returns.
Filing your tax returns can help you during visa processing. Before going for the visa interview, you should ensure that you have all the receipts showing your tax files. You will note that some embassies need tax receipts for the last three years, while others require the most recent certificates. It is a great way to prove to them that you depend on yourself. Therefore, the main aim of taxes is to help collect government revenue in order for it to provide good services to the citizens.