Businesses as a whole whether big or small must fulfil the obligations to pay tax which is a civil duty too.
However, before a business start paying tax, it must first be registered with Corporate Affairs Commission (CAC) to have a legal identity.
In this article, you will be learning why all businesses need to pay tax and also know the benefits of paying your tax up to date.
For business to flourish in the country, there has to be good infrastructure such as roads, electricity, etc. This infrastructure is developed by governments or through close involvement of the government.
When governments collect money from taxes, it ploughs this money into development of this infrastructure and in turn promotes economic activity throughout the country.
Benefits of paying Tax
1. Bringing about the redistribution of wealth and bridging sharp disparities in living standards.
2. Tax compliance enables law abiding citizens to avoid the consequences, penalties and sanctions of non-compliance.
3. Individuals and corporate organizations are conferred with definite benefits, rights and privileges in the system based on their tax compliance status.
4. Promoting civic responsibility, patriotism by citizens and social responsibility by corporate citizens.
5. Bringing about the redistribution of wealth and bridging sharp disparities in living standards.