Question

In: Accounting

Give recommendations for collecting taxes more efficiently by tax authority (i.e. in terms of amount and...

  1. Give recommendations for collecting taxes more efficiently by tax authority (i.e. in terms of amount and collection method).

Solutions

Expert Solution

The following are some recommendations that can help the tax authorities to collect taxes more efficiently:

  1. Creating a feeling a national integration among citizens: A feeling of national integration encourages the taxpayers to pay the taxes.
  2. Providing information by tax authorities: The tax authorities should time to time provide information such as total taxes collected and the various areas where that amount of taxes is utilized. It will create a belief among the taxpayers that the amount of taxes paid by them is being utilized in the right direction.
  3. Grievance redressal cell: There should be a provision of grievance redressal cell by the tax authorities, to address all the grievances of the taxpayers related to the amount of taxes.
  4. Efficient web portal and collection centers: The tax authorities must ensure that the taxpayers can pay the taxes conveniently for this, the efficient web portals with the self-guide facility, and the adequate number of collection centers should be launched.
  5. Provision of penalty: There should be a provision of penalty in case of the late payments to ensure the timely collection of the taxes.

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