Why Do We Pay Taxes if There Is No Law – True or False?

We spend so much of our time planning on investments and other ways to save our taxes. But did you ever realize that there are no strict laws governing the payment of income tax, at least not in all countries? The law might not have much to say about tax payments. But still paying our taxes is very important. Here are some of the most important reasons why we pay taxes even if there are no laws that make it mandatory –

  1. There is so much for the government to run- like schools, colleges, hospitals and the infrastructure on the whole. All of these attract expenses. So who pays them if we do not pay our taxes?
  2. Everyone loves to be part of a civilized urbanized Creating such a region would not be possible without funds which the government gathers in the form of taxes. If every citizen takes a stand and stops paying taxes then the government would not be able to execute any of its plans.
  3. Besides building new structures maintaining them, even the basic ones like roads, come with costs – expenses on material and the labor. When every citizen pays his or her taxes on time then the government would not have to worry about a shortage of funds. In the long run, this would prevent the nation from getting into huge debts with commercial banks or loan sharks.
  4. When the country has the funds to manage all the systems then it would also have a significant improvement in the overall economy. When the economy gets better the people would also benefit in many ways. This can also make it easy to reduce the price of the essentials and bring down the cost of living. And this again would benefit the residents.

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What Happens at the End of a Protected Trust Deed

A trust deed is signed between two parties, a creditor, and a debtor. The Trust deed exists only in Scotland for the residents of the country to enable them to pay off their debts in a convenient way. It is a legal document which has legal implications for the actions of creditor and debtor. The Trust deed bounds both of them in protection based upon some terms and conditions.

The Trust deed can be applied for by talking to an Insolvency Practitioner. A debtor can apply for it if he has been a resident of Scotland for more than 4 years. In case, the deed is approved, he will be protected for a period of 4 years. During this period, the creditor is bound to five times to the debtor for payment of the debt and is not allowed to bother him or take any court action regarding the debtor’s property.

After the 4 years have passed, there can be two outcomes of trust deed:

The first one is that the debtor had abided by the rules and terms included in the trust deed. In this case, his debt is paid off and remaining amount is written off by the creditors. The amount paid has been already agreed with the Trustee and is according to the affordability of the debtor. The creditor cannot ask for more amount to be paid off.

In the second case, if the debtor fails to comply with the terms and conditions of the protected Trust deeds, he will face terrible outcome. He may get bankrupt and also he may lose his home and other property. He will be liable to face any legal action against him by his creditor.

In both cases, the name of the debtor is registered in a public register, called the Register of Insolvencies (ROI) for a certain time period and your job is affected if you apply for Trust deed.…

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