Paying taxes on time is a moral obligation that benefits both businesses and the country. A tax is a mandatory obligation imposed on the citizens and businesses by the government to fund various public expenditures. Inability to pay, as well as avoidance or resistance to tax assessment, is a criminal offense. Taxes are typically paid on a monthly, quarterly, or annual basis. Taxes have existed since ancient times and will continue to exist indefinitely. Taxation is commonly regarded as a burden; however, we have no choice. To avoid penalties, we need to pay our taxes on time. Taxes play a significant role in the economic development and the progress of humanity.
The money that businesses and people pay in taxes is utilised in various ways. This money is used to support government employees, police officers, and firefighters, as well as to pay their salaries. The tax money is used to build and maintain roads, bridges, and other civic properties. These taxes also help to fund hospitals, schools, public libraries, and parks.
The tax money funds many government schools and programs that educate Australian kids. Taxation is used to fund social welfare programs. It benefits those in need. The tax money is also used to establish various health services that provide medical assistance to the poor and street animals.
Businesses may try to postpone their tax filings due to cash flow concerns. This is most common in small businesses. Tax filing is also time-consuming, labor-intensive, and burdensome for businesses with limited manpower resources. However, businesses should make every effort to pay taxes on time for the following reasons:
To Avoid Penalties
Failure to pay taxes on time will result in severe consequences and costly corrective actions, which may include a heavy penalty or imprisonment. This can also be substantial and there is interest on the amount that accumulates until the return is finally filed.
Improve Your Credit Scores
If an individual or business intends to take out loans to purchase a property or expand the business, you must have a good credit rating. Paying taxes on time and not defaulting helps to improve this rating. The credit application is also affected by the amount of tax paid. The higher the number, the better, as it indicates increased revenue and profits.
Increases Your Confidence When Selling Your Business
At the time of selling your small business, the new owner will first examine the financial and tax records. The figures for taxes you have paid will give them the confidence that you know how to run a business and that investing in your company will benefit them.
Having accurate, truthful, and up-to-date financial records helps to boost the inventors’ confidence in the company. On the other hand, investors avoid companies and businesses that fall behind on their tax payments.
It Gives Complete Peace of Mind
You cannot try to escape without paying your taxes because the authorities will eventually catch you. Then why avoid paying taxes on time and risk incurring penalties and interests while destroying your mental health with unnecessary stress? Paying the proper taxes on time provides complete peace of mind. You can then devote your time and energy to expanding and growing your business rather than attempting to avoid paying taxes.
Let’s discuss how we can reduce your tax liability according to the legislation of the ATO. With our professional assistance, we ensure that paying taxes is no longer a hassle for you. Contact Rands Financial Services on 0434391331 for a consultation or drop a message here