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Introduction The Australian taxation law, 2017 comprehensively examines the central importance law that is considered collectively. This taxation law are the ones that give a firm foundation to the Australian tax system. This tax system includes Goods and Services Tax (GST), this is a tax system that is based on consumption and it applies to each level of the goods. This tax is levied on all the goods that are used domestically the consumers pay taxes to the government.
The tax paid to the government is a source of revenue to the government, which enables them to start and carry different projects that leads to the growth of the economy.
The government of Australia when imposing the taxes on people they are supposed to take keen concern of the Australian taxation law select where they are not supposed to overtax the people.
Every citizen in Australia is required to pay taxes on all the goods they are consuming. Through payment of taxes, the government is able to provide them with good roads, better health care, standard education system, and security among others.
This helps and contributes to improved living standards since with good roads and security the citizens are able to carry out their daily duties effectively. No one at this point can escape paying the taxes since in everything they consume, they are already taxed.
In the study of Australian taxation law select 2017, there were some problems that rose and were associated with Goods and Services tax.2 These problems were in a scenario where by the government-levied taxes on the factories producing commodities such as clothes, this tax is referred as central excise that is indirect.
When these clothes reaches the consumer another tax known as value added tax is levied. The tax levied at the initial stage of production and the tax levied on the final product of the commodity being produced, make the commodity to be very expensive in the market. The government is supposed to remedy on the Australian taxation select law, to avoid overtaxing the consumers.
Australian taxation select law, have its exclusive domain on consumption tax within their borders; they take goods coming from other countries as imports. This is a major problem associated with Goods and Services tax, when a commodity is produced locally and part of the materials imported from another country outside Australia, central excise is charged on the other state. On this cost, the government of Australia levy its tax on the commodity. When the producers export their goods outside Australia a tax called central sales tax is levied by UP. This makes the business more complicated to the people involved in the trade due to over taxation. The Australian government is supposed to check out on this issue and remedy the situation.
Goods and service Tax is an indirect tax reform which aims to remove tax barriers between states and create a single market. This to be achieved the Australian taxation law select, has to be amended to do away with different layers of government’s exclusive powers to impose and levy taxes.
The fringe benefits tax (FBT) is another tax imposed on the Australian tax system, by the Australian taxation personnel. This tax is mainly associated with non-cash benefits that an employer provides in respect of the work offered. At most, the tax levied to the Beneficial’s of the benefits from the employer is always high. The Australian taxation law select, is not always fair since the amount they levy on the fringe benefits tax live the employee, with almost nothing. 4 These benefits can be in form of cheap or soft loans, payment of gym membership card, reimbursement of expense incurred by an employee, such as payment of medical bill or school fees, among others. It was advisable for the Australian taxation select law policy to be amended and come up with some formulations to make the benefits offered to the employee by the employer to be tax-free. This would serve as a step to empowering the employee’s economic wise and lead to improve living standards amongst themselves.
The Australian taxation select law imposes income tax to all the people who are employed by the state in Australia. The income tax is deducted from the total/net income of an employee, or referred as the gross salary. The Australian taxation policy give clear guideline on individual and business taxation. This is done to ensure that the government has adequate funds.
While working in Australia one is recommended to apply for Tax File Number, which is issued by Australian Taxation Office. The Australian Taxation Office is a principal collection agency of the Australian government. This number ensures that someone does not pay more income tax.
The amount that someone is taxed depends on how much someone earn.5 Part of the tax is used to cater for Medicare levy; this offers a free medical health care to the employee in Australia.
Australians who are paying income tax must fill tax returns at the end of every year, this include filling all personal details and amount of money being earned. This is so important because in case someone pays more tax one can claim it from the Australian Taxation office. Those earning normal wages prefer to file their tax return online, while those with more investment like in real estate, rental houses, and shares investment prefer hiring an accountant to file returns for them.
The Australian taxation law select 2017, came up with a resolution to solve the problem associated with multinational tax avoidance. New measures were placed in readiness to remedy the situation. A new taskforce that was well funded was brought on board to fight this menace. It was discovered some wealthy individuals in Australia had been avoiding payment of tax. This was a very huge setback of the government since its revenues would remain at relatively low levels, with avoidance of the wealthier people in paying of taxes. The Australian Taxation Office (ATO) was well funded and mandated with the role to ensure all individuals and businesses paid the taxes accordingly so as the government would get funds to execute their functions effectively as per the expectation of the people.
The Australian government came up with a special code, known as Tax Transparency code, which provided information about the tax to both large and small businesses. There was an emerging issue where whistleblowers were encouraged to feed the Australian Taxation Office with information regarding tax misconduct. The whistleblowers were promised protection by the government against violence and victimization by the culprits, for disclosing information to the Australian Taxation Office. This government would work in coherent with the Australian Taxation Office to ensure that those schemes plotting on tax avoidance are combated before they spread and become a menace.
Through the Australian taxation law select 2017, tough penalties were implemented to curb the effect of multinationals in avoiding paying of taxes. There was also new Diverted Profits Tax, this was introduced on 9 February 2017, to ensure that the multinationals made the correct tax payment in Australia. The government was to play a key role in ensuring that there is closure of loopholes that give room to multinationals to make use full of and derive benefits in the differences between the tax treatment of entities and instruments across different countries.
These loopholes were the main misconduct of giving a chance to multinational to acquire unfair tax advantages over the local domestic companies. The Australian taxation law select 2017, was to focus on implementing Transfer Pricing rules, this was to regulate how the companies set up their prices to trade goods and services in different countries. This was to monitor the multinationals companies, which would shift a lot of profit to other countries and pay low tax in Australia.
Advice to the clients in Australia The clients operating in Australia they should always follow the right procedures when paying the taxes to the government. This will help them to be familiar with policies regarding the collection of taxes so as to avoid being over taxed or under taxed. This has a positive impact to individuals and also to the country’s economic position. Each client is supposed to acquire Tax File Number, this is of vital importance since the Australian Taxation Office would be able to obtain the clients important details. The clients are not supposed to avoid payment of taxes since they will be weakening the business operations in Australia. The clients also have to raise concern on the amendment of Australian Taxation Law select, to avoid some unfair taxation or custom charges on the goods and services which has already been taxed.
Conclusion The illustrations above shows that the government depend so much on the people to pay taxes for it to carry and execute its functions effectively. Through the Australian taxation law select 2017 recommendable measures concerning collection of taxes were formulated. This important step was readily welcomed since it would contribute to high collection of government revenue in Australia. The government also should always be in a position to formulate tax rules that are compatible with the people. Lastly, since the functioning of the government depends on the revenue it collects, the people are encouraged to be law abiding and pay taxes not to try and avoid payment of tax levied.
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