Taxes

Tax is a Compulsory payment of a percentage of income, property value, etc imposed upon persons or groups for governmental support. Generally, your tax return must be postmarked no later than April 15 or sent no later than that date if you're filing electronically.

Tax revenue is used mainly to finance welfare, i.e. to pay for public sector expenditure. Taxes fund parks, police, courts, libraries, health and welfare programs, and social services. Tax evasion is a federal crime that is punishable by jail and a hefty fine. But beyond that, filing taxes does not have to be a bad thing. If your employer has been withholding taxes for you all year, you might not owe any at all in fact, you might even receive a refund, especially if you are eligible for tax credits like education, disaster or earned income credits. And you can get this money back less than two weeks after you file, if you file electronically. There are differnt type of taxex like capital gains tax, Property tax, Transfer tax, Inheritance tax, Sales tax, Estate tax, Income tax, Value added tax, etc. You can prepare and file your taxes yourself, or hire a tax professional to do them for you. Either way, you will need to start off by collecting the following documents:
» Forms from employers showing wages for the year.
» Forms from banks and other financial institutions showing interest and dividends.
» Information on expenses to claim on the return, such as itemized deductions, child care expenses, or employee business expenses.
» A copy of the last tax return filed

Capital Gains Tax:

Capital gains tax (CGT) is the tax that you pay on any capital gain you make and include on your annual income tax return. It is not a separate tax, merely a component of your income tax. You are taxed on your net capital gain at your marginal tax rate. The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital . . . the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy. You make a capital gain or capital loss if a CGT event happens. You can also make a capital gain if a managed fund or other trust distributes a capital gain to you. If your total capital losses for the year are more than your total capital gains, the difference is your net capital loss for the year. It can be carried forward to later income years to be deducted from future capital gains. You cannot deduct capital losses or a net capital loss from your income. There is no time limit on how long you can carry forward a net capital loss. You apply your net capital losses in the order that you make them.

Sales Tax:

Sales taxes are added to the cost of a product or service and are generally paid by the customer. Most states and local taxing authorities impose a general sales tax on retail sales and certain services. Business owners are responsible for collecting these taxes and remitting them to the appropriate taxing authority.
Goods purchased to resell from manufacturers or wholesalers are exempt from sales taxes because the tax will be paid by the retail customer. This is commonly referred to as a resale exemption.Every business that sells taxable goods or services must obtain a sales tax license from the state in which it does business prior to engaging in business.

Property Tax:

The property tax is a tax on the assessed value of property. It is the primary source of revenue for local governments. The taxing authority requires and/or performs an appraisal of the monetary value of the property, and tax is assessed in proportion to that value. Forms of property tax used vary between countries and jurisdictions. Many provinces in Canada levy property tax on real estate based upon the current use and value of the land and this is the major source of revenue for most municipal governments in Canada. In netherlands, Property tax is levied on homes on a municipal basis in two parts: for the one who lives in the house and one for the owner of the house. When one has a rental home, he/she should only pay the living part of the tax. In the US, another form of property tax is the personal property tax, which can target automobiles, boats and similar vehicles; other durable goods ; inventory; intangible assets such as stocks and bonds.

Transfer Tax:

This is imposed when transfer of real property is involved whether by sale, donation, barter or any other mode of transfer at the rate of ½ of 1% of the total consideration in the acquisition of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. The tax is due within sixty (60) days from the date of the execution of the deed or from the date of the property owner is date and payment shall be the duty of the seller, donor, transferor, executor or administrator. Non-payment within the time required shall subject the taxpayer to a surcharge of 25% of the original amount plus an interest of 1% per month.

Income Tax:

Income Tax is a tax on income. It is paid by employees and people who are self-employed and may also be payable if you are not working but you have an income, such as a retirement pension or an occupational pension. Collection of Income-tax was well organised and it constituted a major part of the revenue of the State. A big portion is collected in the form of income-tax from dancers, musicians, actors and dancing girls, etc. Not all income is taxable and you are only taxed on taxable income above a certain level. Even then, there are other reliefs and allowances that can reduce your Income Tax. Taxable income includes: Earnings from employment, Earnings from self-employment, Most pensions income (State, company and personal pensions), Interest on most savings, Income from shares (dividends), Rental income, Income paid to you from a trust.