Benefits Of Canadian Tax Advice For Non-Resident Investors
In any country, the government has to involve itself in matters concerning tax especially to the upcoming investors. If the government was reluctant on these areas, many things can go wrong. Here are some of the benefits of taxation. Levying is one of the ways through which a government can use to control illegal businesses in a country. Some of the unwanted business will believed heavily to discourage them from operating. By doing so, the government gains control of them.
Fiscal policy is one of the most suitable way through which the economy of a given country can be promoted. For instance, the imports of a given country are usually taxed highly. This is a technique used by the government to protect the foreign goods from dominating the market. Once this happens, the local goods produced in the country gains popularity since they are sold at a lower price. Owing to these, there will be increase in exports of a country.
To promote regional balance, the government can use the methodology of imposing heavy levies to those business that are established in urban areas. In addition, less levies are executed to those investors who are willing to invest in rural area. This encourages entrepreneurs to establish their enterprise in rural area. Owing to these actions, regional disparity is minimized.
There are those individuals who are excessively rich while overs are extremely poor. When this situation is not checked, a mess can pop up in the economy of a country. To avoid this mess, the wealth of these individuals is imposed to heavy taxation. Failure take this action makes the particular economy unstable since the circulation of money in the economy is high.
One way through which the revenue of a country is earned is by taxation. Through levies, the government is in able to collect many revenues from various sectors of economy. For instance, there are several types of levies such as income levy, custom duty and land revenue levy. All these levies are source of revenue.
In any given country, the taxation sector is believed to be among the sectors that offers a many employment opportunities to a large number of individuals. Any time when this sector plans to increase its employees, many jobless people secure job and this helps to improve their standards of living.
Imposing heavy levies to foreign investors is important. The government usually imposes heavy taxes on goods produces by the foreigners who have invested in the country. This helps to prevent foreign goods from dominating the industry.
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