What are Taxes?

One of the most fundamental aspects of a countryís economic system and also its main source of revenue apart from the profit made from export and import are the taxes that are levied on its citizens and the different organisations and corporations that operate within its borders. Taxes are defined as any form of payment that is made to oneís home government in order to enjoy certain privileges such as using any luxury goods or making use of the market or even something as basic as earning a salary. Thus it is the fundamental duty of a citizen to pay his or her taxes and any failure to do the same would be punishable by law since tax evasion is considered a federal crime that can obtain a sentence of a long time of imprisonment depending on the degree of the crime. When one considers the fact that taxes are levied on almost every aspect of life, it is rather inevitable that we get the feeling that imposing such a large amount of tax on the people of the country might be immoral, but it is to be remembered that we are constantly making use of schemes, services and products that the government provides for us without any charge. Thus, in order to maintain the government offers at a respectable level, it is their prerogative to levy taxes on the citizens who make use of the different facilities that they provide. For example, in Canada, when a person uses the road by owning and using any vehicle, be it a small motorcycle or even a monstrous live-in trailer, they must pay road taxes. This is because it cost the government a large amount of money to lay the roads and also to maintain their quality and also to enforce road laws, etc. Thus, in order to avail of these facilities that the government provides us for free, we must pay our taxes.

In Canada, the financial or rather fiscal year begins and ends in the month of March, and hence every citizen must pay their taxes for the entire year during that month. It can be done this way, or one can choose to spread out the amount that they have to pay over the twelve months in order to reduce the pinch they feel during that one month. Another form of the taxes that one encounters daily, apart from income tax is the luxury tax. When one purchases any goods, items or services that are classified as a luxury item then the amount of tax that they are charged for the purchase becomes astronomical. This is because, since it isnít necessary for day to day survival, these goods have increased taxes whereas the basic needs and necessities are charged very little to no tax at all. In fact, there are government owned shops in Canada where the basic goods are available at cheap prices. Thus a clear cut and precise understanding of the tax system of oneís country is essential in order to have complete control over your financial status.

Add Your Comments:
Fields with * are required
Your Comment Below:
Enter Above Code
Note: Comments are moderated - Spam will be deleted

HOME | Contact | Disclaimer | About Us | Faqs | Discussion |