Question

‘Taxes are a fact of life, and businesses, like individuals, must pay taxes on Income’ –
Elucidate.

Answer 1

Taxes are always fact of life and businesses should be paying taxes because businesses are playing an important role in development of economy and business is always be ethical in payment of taxes to development of economy.

Government is the sole responsibility for collection of taxes and it is fixing the rate of tax for each section of business which is is generating profits accordingly, so these businesses are liable to file their return of income and pay the taxes accordingly to the profit made, so that these profits which are being made from the society are returned back to the society by the businesses .

Government are generally authorised for public expenditure on this taxes which has been collected so it will be allocating the collected taxes to different section of society according to their needs and it will be trying to maximize their overall equity and trying to maintain equity between people so businesses should always be paying the taxes in an ethical way because it will be helpful in development of society as a whole so it will be returning back the money it has generated from the people, and businesses are generally eliable to pay taxes on time because it will be helpful for the business in order to generate higher business reputation and higher sustainability in the long run.