Many countries are run by governments which are elected through the popular will of the majority hence sanctioned to raise revenue through whichever means in order to provide essential and basic services to the citizens. Such services include but not limited health services, education, roads amongst others. Being provided for a common cause, they require high investment and relatively high capital in order to execute. This therefore means that the government has to lay down polices and measure which can aid in correction of revenue in order to support this noble cause.
With the advent of increased poverty levels in the world, many people are fighting hard to gain access to the above mentioned services hence important for the government to expedite their service delivery to the people. There is need for each and every government to employ policy makers and technocrats who have the audacity to make and implement policies which can support revenue collection in a country. One major avenue which many sitting governments use is the taxation.
Each and every citizen is supposed to contribute revenue which will be put together and utilized for the benefit of all regardless of the amount one contribute to the coffers. In order to maximize the revenue corrected through this avenue, many governments segment tax payers into various segments in order to avoid cases of double taxation and tax evasion which are illegal. This help the revenue authorities keep tabs on all the tax payers and above all ensure that such tax payers oblige to their responsibility of paying taxes as and when they are due from them.
Property investment contributes towards this noble venture in the most appropriate manner. Investors in this industry are required to pay tax on monthly bases based on the net revenue collected from the tenants and other occupiers. They are required to make utmost disclosure without concealing any form of material facts as this will be treated as an attempt to deprive the government off its revenue yet the investor expect the same government to provide essential services to them.
Property for investors should work closely with the revenue authorities in their countries and ensure that they create a good working relation and rapport with such an authority. This will ensure that such an authority will makes concerted effort to ensure that they remind the investor of the due date for payment of taxes. This will go a long way in ensuring that there are no heavy penalties being levied on the investor as this could end up milking all the expected returns from the investment made and this could be detrimental to the welfare of the investor considering that many of them rely on such investments to meet their day to day activities to support their friends, families and relatives who depend on them for their daily survival. Investors should just be good tax payers as this will help them shed off a negative impression created by non compliance with the existing laws.