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Business Taxation: Why You Need To Know It

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Have you ever wondered where the government gets it fund for the allocations of its infrastructure developments and social projects?

The economic growth of every country can be affected or directly stimulated by government policy like business taxation. Taxation is one of the primary sources of public finance.

tax

The objectives of government taxation

Business taxation plays an important and fundamental role in the lives of a country’s citizens. Taxes that are paid by businesses aid with the financing of public expenditures to several government functions such as public works and social development programs. Moreover, it also has significant impact to the economy. It helps to provide more job opportunities to its citizen.

All business taxpayers should know that their taxes increase the economic growth and job creation in the private sector. At the same time, they should also realize that they also benefit from government programs in return for their tax cost.

Types of business taxation

Basically, the type taxes you must pay and how you pay them depend primarily on the kind of business or businesses you run. The following are the general types of business taxations:

1. Income tax – an annual income tax return should be filed by any business except for partnerships because partnership businesses submit an information return. If your business is using the withholding method of tax settlements, you may pay your taxes as you earn your income.

2. Self-employment tax – this is considered as the “most-liked” form of tax for taxpayers because of the wide coverage it provides them. Self employment or SE tax is a social care and Medicare basically for someone who works for himself. These benefits include disability insurance, hospital insurance, retirement and death insurance.

3. Employment taxes – it is the responsibility of a businessman who has employees on his or her disposals to face his or her employment taxes responsibilities. Employment tax covers Medicare and social security taxes, federal unemployment tax or FUTA federal income tax withholding for his or her employees. However, when it comes to the social security and Medicare taxes, the employer only pays half of the exact tax payment while the rest is paid by the employees through deduction from their monthly paycheck.

4. Excise tax – excise taxes are taxes paid when you purchase certain good particularly gasoline and other fuels. They are usually included in the price of the commodity a certain business buys. There are several broad categories of excise tax which includes the following:

  • Fuel taxes
  • Air transportation and communications taxes
  • Manufacturer taxes
  • Environmental taxes
  • Trailers, heavy trucks and tractors’ first retail sale taxes

Generally, the business operation determines when and what type of tax a person has to pay.

In conclusion, it is part of your duties and responsibilities as businessman to settle all your business taxation responsibilities on time. In fact, tax evasion is greatly considered as a crime by several states and correspond a certain amount of penalty. However, paying taxes is not only to get avoided from legal penalties, but to help the government to raise funds for the public services.

Business

Creative Pinoy Guy Makes Realistic Action Figures from Rubber Scraps

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A lot of Filipinos are not just creative, they are also clever in that they can find ways to make the most of their situation. One such guy is Elmer Padilla, a street artist who makes realistic action figures from rubber scraps.

His story was shared on Facebook by netizen Adrian Soriano Bernabe who posted about his craft on the GUHIT Pinas public group page. According to Bernabe, he got curious why there were people crowding around Padilla one day while he was at the public market in Imus, Cavite.

Photo credit: Adrian Soriano Bernabe‎ / GUHIT Pinas – Facebook

He went closer to check out what was going on and discovered that the people were crowding around Padilla because of his awesome action figures. The toys looked so realistic and incredibly detailed that it was quite difficult to believe these were made from discarded flipflops and other rubber scraps.

If Bernabe had not seen Padilla create some of the action figures, he probably wouldn’t believe the ones the vendor was selling really came from the rubber scraps. Indeed, it’s difficult to believe that but this only means Padilla is a highly talented artist.

Photo credit: Adrian Soriano Bernabe‎ / GUHIT Pinas – Facebook

Bernabe said that Padilla had a lot of action figures there, including Deadpool, Hellboy, some Transformers robots, and various well-known superheroes and characters. But the artist in him did not just stop at figures he can copy from existing creations because he also made his own robot designs.

Photo credit: Adrian Soriano Bernabe‎ / GUHIT Pinas – Facebook

According to the amazed netizen whose story was later posted on Viral Manila, he learned that Padilla hails from Catbalogan, Samar but had gone to Cavite to try his luck there. His main bread and butter is being a construction worker but he enjoys making the action figures on his free time and sells his craft to interested customers.

What are Action Figures?

Action figures are dolls or little figures that represent a real person or a fictional character known for ‘vigorous action’. These poseable characters often come with jointed limbs to allow the owner to change how the character looks.

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Business

Diligent Grade 12 Student Sells Corn to Go to Private School

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Working students are truly inspiring because they found a way to solve the challenge of not having enough money, as long as they can go to school. Netizens express admiration over a young man who sells corn so he can go to school.

Facia Lois Estive shared on Facebook how she and a friend were just having some snacks when the latter noticed that the vendor selling corn across the street was wearing a school uniform. The two observed that there were a lot of people buying from this young man.

It was only when most of the customers had finished buying corn that Facia and her friend went closer to check out this inspiring young man.

Photo credit: Facia Lois Estive / Facebook

They learned that he is already in Grade 12, taking up the Humanities and Social Sciences (HUMSS) strand at the University of the East (UE), a private educational institution in Manila, Philippines.

During his free time, this hardworking student sells corn and remits his earnings so he could pay for his tuition fees!

At the time Facia and her friend took his photos, the student was wearing a uniform and a pair of slippers but he revealed that he usually changes into ‘civilian’ clothes.

Photo credit: Facia Lois Estive / Facebook

Inspired by this young man, Facia shared his story and photos on Facebook where it quickly went viral.

While they had forgotten to ask for his name, they later discovered that he is Joel Mendiola. His Facebook account confirms that he’s from UE and that he’s not ashamed about selling corn even if he studies at a private school – because it is the very reason why he can go to school, after all.

Kudos to you, Joel Mendiola! Good luck.

What is a Working Student?

As the term implies, a working student is someone who earns money in various ways so he/she could go to school. A lot of schools

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Ferrari Insult Reportedly Gave Rise to Lamborghini

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Lamborghini Brand

Most business owners need an inspiration to start their business but it is widely believed that an insult by Ferrari’s owner would lead to the rise of the Lamborghini brand.

Born to grape farmers of Cento in the Emilia-Romagna region, Italy, a man named Ferruccio Elio Arturo Lamborghini would use his knowledge as a mechanic to start a business of tractor manufacturing back in 1948.

He would also launch several businesses but his prowess as a tractor manufacturer would bring the Lamborghini name much fame. As he grew richer, Lamborghini began to collect expensive cars – and he had a Ferrari, a Jaguar, and a Mercedes 300 SL, among others.

According to several stories, Lamborghini encountered problems with the clutch of his Ferrari. So, he went to the brand’s founder and owner Enzo Anselmo Ferrari to talk about the issue but was allegedly insulted as the latter told him to stick to making tractors and stop dabbling with the manufacturing of cars – or so the urban legend goes…

Lamborghini Brand
Photo credit: i-Elevate Institute

After getting insulted by Ferrari, Lamborghini was so angry that he began to build his own brand of cars to specifically become Ferrari’s competitor. Soon enough, the Lamborghini brand would catch up with the Ferrari brand and became a well-known manufacturer of fast cars, taking a chunk off Ferrari’s market.

Even to this day, it’s hard to say who is more popular, Ferrari or Lamborghini. But what’s quite amazing is that if the story of the insult was for real, then Ferrari made one of the biggest mistakes in his life when he insulted Lamborghini.

But it would seem that the ‘insult’ thing was just urban legend. On a biography posted on Lambo Cars, the writer claimed that Ferrari refused to meet Lamborghini regarding his complaint; thus, if they never met to talk about it, then the ‘insult’ couldn’t have happened.

How Did Lamborghini Fix His Broken Ferrari?

As to how Lamborghini fixed his broken Ferrari, the same biography wrote:

He noticed the clutch fitted to this Ferrari wasn’t any different from the ones Lamborghini mounted in their tractors, so he drove the Ferrari to the Cento factory and had a Borg & Beck clutch installed straight from the parts list of one if the tractor models … the problem never returned after that.

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