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A tax is a legal charge or levy that you are required to pay to the government or to other statutory bodies. Failure to your taxes can result in punishment and fines. Some taxes are direct – i.e the individual pays the government directly – e.g. Income Tax. Others are indirect taxes such as the VAT you pay but which is collected by the retail store etc.

Taxes are an inevitable part of modern life. Benjamin Franklin in a letter to Jean-Baptiste Leroy, re-printed in The Works of Benjamin Franklin, 1817: is said to have written – “‘In this world nothing can be said to be certain, except death and taxes.”

 

 

There is no getting away from taxes. You are taxed if you earn (income tax), if you spend (VAT and sales tax), if you invest (capital gains) and if you die (estate tax). However, with careful guidance and investments, you can minimize the amount you have to pay and this is perfectly legal. All wise people do this. However, you need proper guidance to ensure what you are doing is perfectly legal and correct.