Tax is a mandatory financial charge which every taxpayer of a state needs to pay as a fundamental duty towards their country. It’s important as it helps the government to develop necessary and important things like roads, public parks, government schools etc so the citizens can enjoy all such facilities. If the citizens do not pay taxes regularly, it gets difficult for the government to maintain good standards as the result of lack of funds. This in turn, ruins the reputation and development of the whole nation. So we can now say why tax is so important. A person who fails to pay or resists paying the tax is punishable by law. Taxes can be direct or indirect or also can be in the form of money.
Purposes and its effects
The main purpose of levying the taxes is to generate necessary revenue for the nation by the government and also to alter prices of goods and services. When the proper collection of tax doesn't takes place there are issues like inflation that starts to persist in the country, which in any way affects the citizens negatively.
A tax payer can be anyone, an individual or a company. A tax advisor proves really beneficial while talking about tax paying. A tax advisor or a tax agent is the one who has special knowledge and advanced training of the tax law. Services of the tax agent is needed when
- When the tax payer needs to minimize taxation but also needs to be compliant with law in convoluted financial situations
- When the tax agent needs to represent the clients before the tax courts and authorities.
Tax advisors can be either hired personally or clients can just approach companies which provides tax agent in Bankstown.