Final answer:
Remitting their quarter 3 sales tax liability is vital for Crankshaft Customs as it aligns with legal compliance, contributes to government revenue, and ensures smooth business operations. Taxes fluctuate with economic conditions and are used for public goods and services. Timely tax payments highlight a business's commitment to societal responsibilities and financial health.
Step-by-step explanation:
On September 15, Crankshaft Customs remitted the balance of their quarter 3 sales tax liability, which is a crucial aspect of business operations. This transaction is significant because sales taxes are a major source of revenue for governments, used to finance a variety of public services and infrastructure. Sales tax liabilities are based on the volume of sales a business makes, and like other taxes, rise or fall with economic activity. In the US, taxes are a fundamental part of the economy, with the government typically collecting about 30-35% of income as taxes.
Businesses, like individuals, have an obligation to pay taxes on their income and business activities. Besides income tax, they are responsible for employment tax, unemployment compensation, social security insurance, and excise tax. Being compliant with tax laws ensures that businesses contribute equitably to the societal structure and helps maintain an environment where businesses can thrive. Moreover, tax compliance avoids legal pitfalls and financial penalties that could disrupt business continuity.
An important principle in taxation is that it should be equitable, simple, and efficient. If these criteria are met, the tax system is more likely to be accepted by taxpayers. Non-compliance or failure to remit taxes like sales tax, can have serious repercussions, not just for the business, but also for the economy as a whole, as government budgets depend heavily on tax revenues.