We all need to pay taxes. If we don’t then there are serious consequences to not paying. The concept of tax is macro and it often causes a lot of confusion. Regardless of whatever we think, it is important to know about the purpose of paying tax for all taxpayers. So, where does our money go to? These are some of the basic things you should know.
Taxes can come in various forms. For example, when we work to get paid, a small amount of our salary goes to the government. The company has every right to withstand a small percentage of our salary.
As a citizen of any country, it is your civic duty to pay taxes. Government tax agencies can ask you to pay certain amount of taxes. If a citizen ignores then there are severe consequences such as going to jail or hefty fines.
Buying a product from a store, you automatically pay a small amount as sales tax. This amount is a small percentage of the item’s cost that is charged by the store, but goes to the government.
Tax money you pay also goes to certain run the police and firefighter departments. They get their salaries from our taxes.
Tax money also goes for public maintenance such as building of roads, libraries, parks and government schools for the poor.
Taxes need to be paid on time. You can also pay as a sole trader tax in Bankstown in Australia to get better tax returns in the future.