Everybody wakes up in the morning to improve their lives. With the little you earn, one needs to pay taxes to your government. This helps the state or the federal government to plan on how to improve the lives of their citizenship as well as the economy of the country. Different countries have set up tax collection authorities with a given percentage of your earnings(income tax) or purchases(value added tax) collected by the authorities. What is optimal law advice for taxing times?
To answer this properly we need to look at it from different angles. Different companies prefer paying taxes at the end of the year this is the most appropriate time since the financial records are usually compiled annually apart from the quarterly and semi-annually reports. This helps them to know the overall revenue made during the year and to easily calculate their profit after paying their taxes. Global companies with subsidiaries in more than ten around different regions need a yearly return to plan on their operations. For an organization, good foundations set up is key to good tax record. Proper documents including employment contracts, supply contracts, and purchases receipts, should be properly kept and maintained.
Having more of expenses which may include insurance, power and wages may ensure that the company records a lower gross profit and consequently a reduced tax payable. For individuals, early planning is the answer to tax payment. The last minute rush may do you more harm than good, it may waste most of your time and also land you in paying unnecessary penalties. If you start planning on a monthly basis is the most appropriate so that you can meet your obligations. Having proper documents may also help in your planning as well as a good financial advisor such as a bank.
The basics of taxation need to be clear, you cannot avoid payment of tax no matter how long you hide. the best thing is to play by the rules of the game. Increase you deductions to ensure minimum tax payment. If its insurance for your house takes one that is preferably 6-10 times your salary. this will ensure that the insurance covers a substantial amount of your money. Working for your money should be your goal and I bet no one wants to see his/ her money just lying idle in governments accounts. Increase as many deductions as possible on your payslip.