Many people seem to think that filing tax returns is optional and dismiss it as unnecessary and tedious. As we will see later, this is not a very sound view of tax returns.
Income tax is a tax on a person's income, remuneration, property gains, occupation, trade or business conduct, or any related item of gross income, as specified in the Tax Act 1997, as amended (Tax Act), amended tax laws, or other special laws for such types of income.
Filing tax returns is an annual activity considered a moral and social obligation of every responsible citizen of the country. It is the basis for governments to determine the level and means of citizen spending and, from time to time, provides a platform for assessment to seek reimbursement or other forms of relief.
Submitting a return is a sign that you are responsible. The government requires individuals with a certain annual income to file a final tax return by a certain date. Calculated taxes must be paid by the individual. If you do not pay your taxes, you will be penalized.
Submitting a statement is a sign that you are being held accountable. Not only that, but it makes it easier for individuals and businesses to complete subsequent transactions. Because after income is paid, it is recorded by the tax department along with taxes, if applicable.
Whether you are an individual, or a corporation if you need help in filing your income tax, your Manila Consultants are ready to help you with your business needs and taxes.