FINANCIAL LITERACY FOR ALL-TAXATION

FINANCIAL LITERACY FOR ALL-TAXATION

Every individual or organization pays tax to the central government for development and other lawful uses.
Even the unemployed pay indirect taxes and all non-profit making organizations pay tax on their employee salaries, that is pay as you earn “PAYE” to the state.
Taxes could be direct, that are imposed on income accrued to an individual or a corporate entity. Indirect taxes are implicitly imposed on goods and services, which we pay every time we buy some good or service.
Tax is therefore inevitable. Every living human being or corporate entity pays tax. Once tax cannot be evaded by individuals or corporate entities, it is prudent that they prepare for it.
Tax liability should be thought ahead of and planned for, so that its payment will be convenient to you the tax payer.
Taxation is a complex subject. I want to keep you reminded that as you intend to establish your organization or has already established it, whether small or big, you need to consider how you would be able to pay your taxes efficiently, without any cash flow problems.
Organizations face tax liabilities on incomes, dividend, capital gains, employee salaries, withholding tax and so forth. Such taxes could be huge and should be budgeted for, so they payment becomes easier. All other tax liabilities should be thought of ahead of time before payment is due.
Taxation is therefore very important in personal and business decision making.
Some basic knowledge in taxation is needed by every entrepreneur. One can use the services of tax consultants to enrich one’s knowledge in the subject or attend tax seminars and other related conferences on tax. All the same, your organization needs to employ the services of a competent professional accountant to handle the tax issues.
Taxes must be paid but they could be avoided by legal, sophisticated, intelligent tax planning measures. The tax experts can help you with this and charge you for a small fee. Corporate entities and individuals need to spend on tax allowable expenses, that is, spend funds on assets that qualify for capital allowances, industrial building allowances so that these could be deducted from the revenue before tax is charged. The tax payable would then be reduced. Cash flow problems could be solved.
Obey the tax authorities. Plan to pay your tax timely and wisely.

©2010, Godwin-Xavier Ayeebo

Email: gayeebo@gmail.com