Advantages of Filing Tax Returns
There are four basic taxes. Property taxes are assessed annually and a portion of the value of the property is given to the government. When a portion of your salary is deducted and paid to the government, we call that income tax. The government can also get revenue by selling some of the goods and property grabbed from an estate. Consumption taxes tend to be in the form of tariffs, sales taxes, and usage fees. It is important to note that consumption taxes are easier to collect than income taxes, even though they require extensive recording and auditing. If the government wants the citizens to stop using various products; it may impose heavy taxes on the same. You may also find sin taxes to discourage the use of alcohol, tobacco, or services like prostitution. People who consume alcohol, tobacco, or practice prostitution do not have good health and that is why the government imposes taxes on such.
There should be a source of funds in order for the government to ensure that the people in the community get services; that is where taxes come in. For the proper running of a community, there should be clerks, administrators, firefighters, and maintenance works. There is no way that these people can work without being paid. If you realize that the taxes affect the poor people more than they do to the rich; we can say that they are regressive. Tax is progressive if it affects the rich people more than it does to the poor ones.
If you file your tax returns, it will not be hard for you to get a vehicle loan. It is important to note that most banks ask for the copy of the tax returns. Moreover, the copy can be of help especially if your loan application is rejected. Besides, you will be in a position to get the loan you want if you have a copy of the tax returns. Claiming a refund requires you to show a copy of the tax returns.
It 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. Depending on where you want to go, you can be asked to produce receipts to prove that you file your returns in the last three years; others require you to show your recent certificates. It will show that you have some money. Whichever, form in which tax takes; the principal aim is to ensure that everyone in a certain country enjoys the services that the government has to offer.