Taxes are taxes that all citizens must pay to the State so that it can distribute them equally among the needs of the moment. In other words, when we talk about tax, we are referring to the money that individuals and companies have the responsibility to pay to the corresponding government entity where they reside. Make use of the Tax refund calculator in this case.

The reason why pay taxes is linked to the fact that said money is used to finance and improve the services that the government offers to citizens, thus paying for some expenses of the population to build, improve and / or renovate:

• Public educational entities
• Public health centers
• Road infrastructure
• Means of public transport
• Collective security
• Caring for the environment
• Pension expenses
• Expenses in urban and rural cleanliness
• Potable water supply

Conservation of heritage and other public services that benefit and improve the quality of life of each citizen and that are in common use.

That is, paying taxes constitutes the contribution of each person for the improvement of services that the nation provides to society in general.

Why does the state require paying taxes?

The State requires all citizens to pay tax in order to have sufficient financial resources to meet public expenses. In the state, the collection system is divided into three levels: national, departmental and municipal. Since taxes are collected at different levels, each is responsible for a government entity.

 National taxes are collected by DIAN, departmental and municipal taxes are collected by the Municipal Treasury Secretary. Even when taxes depend on a different entity, they have the same objective, which is to guarantee the quality of goods and services at the national level and in all areas (health, education, infrastructure, security, among others.)

Another purpose of paying taxes is to seek greater efficiency in society, since taxes can tax activities that cause harm to people, such as the tax on consumption of cigarettes, beers and alcoholic beverages.

Tax types

The taxes vary according to their characteristics and have two classifications

Indirect taxes: These types of taxes are amounts of extra money that include goods and services and all transactions that are made with them, such as VAT.

Direct taxes: This type of tax falls directly on the income of citizens and each citizen is identified, that is, the tax falls on a personalized basis, and is based on the economic capacity of each taxpayer, such as Income Tax.

What happens when I don’t pay taxes?

The  tax evasion , i.e. not comply with tax obligations, whether intentionally or inadvertently, resulting penalties ending in fines and even embargoes precautionary, which are that the secure state assets on behalf of the evader citizen until pay the corresponding tax and if not, the goods will be auctioned.

Ultimately,  article 434 A of the penal code  indicates that citizens who do not pay their taxes can even be temporarily deprived of their liberty and a 20% fine will be added for all assets omitted or incorrectly declared.