Good-Guy
VIP Contributor
Bad debts is usually considered a bad thing. When a person has a huge amount of bad debt, they usually have a much harder time dealing with their finances. Companies or individual who have a big amount of bad debts usually end up borrowing more loans in order to pay the money they borrowed in the past. This might lead to more debts. Any kind of company that have a higher bad debt often goes bankrupt faster. Moreover, the situation becomes worst when certain conditions like pandemic happen and this is when things are over for many companies or individuals. Not to mention other problems bad debts may cause.
If a company goes bankrupt they might even lose many investors. One of the main things that could increase bad debt is not paying taxes at the right time. Usually the government does not force people to pay taxes because they provide the facility to the public to pay taxes annually rather than paying the taxes each month. However, not paying the tax money at time could increase those taxes and it could lead to huge debt. In the end, a person could even be declared defaulter and such kind of company or person might be required to pay tax in case they sell their business or property. So do you think that not paying taxes could lead to bad debt?
If a company goes bankrupt they might even lose many investors. One of the main things that could increase bad debt is not paying taxes at the right time. Usually the government does not force people to pay taxes because they provide the facility to the public to pay taxes annually rather than paying the taxes each month. However, not paying the tax money at time could increase those taxes and it could lead to huge debt. In the end, a person could even be declared defaulter and such kind of company or person might be required to pay tax in case they sell their business or property. So do you think that not paying taxes could lead to bad debt?
