Tax Information

Your income tax information is updated annually from the information you provide on a yearly tax return you have to submit. Tax return options that you have at this time are; fill in the return yourself or, have a professional fill it out for you. Although it is up to you which of these choices you make, the return will have to be filled in and sent to the relevant tax office otherwise you may face higher taxation rates in the future, plus perhaps a fine. Many people still opt to fill in their own returns which is OK if you know what you are doing but if you are in any way unsure, get a professional to do it or you. The reason why I say this is because every year, many people that would be due for refunds, if they knew all the tax benefits they were entitled to, do not get them because the person filling in the return was not aware of all the benefits available. A professional of course though, is paid to know all the benefits which are available and by entering them on the return, ensures the tax payer a refund where and if applicable. Each year, the lack of claims which people are entitled to, swells the government budget but, unfortunately, they often only go a small way to compensate for the lack of taxes received from the big businesses. These large businesses and corporations can afford to employ tax accountants on a permanent basis and those accountants spend a lot of hours looking for taxation loop holes and other ways to reduce the business’s tax bill. This is perhaps becoming a bigger problem as many of the larger corporations become multi-national. A multi-national company often has a choice of which country they wish to pay tax to and obviously, they will chose the country with the lowest tax rates. Even though one of these companies may opt to pay tax in a country with a low taxation rate, they still try to reduce their tax bill still further and in some cases are able to skip paying taxes all together by playing one country’s government against another. This corporate tax fraud or tax evasion means that a government may not receive as much income from taxes as it had hoped and so to compensate for that, increase taxes in other fields, perhaps income tax. Although at one time, if a company managed to get away without paying taxes, people would boycott that company but that seems to be something that was left in the pastas today, increasing numbers of large corporations, are avoiding paying tax, not just in one country but in any country. We now seem to be helpless in stopping this from happening and that is a problem as, if it continues, even without increasing, a government, whether actually wanting to or not, will have to hike the income tax rate to make up for any shortfall from businesses.