Solution
Robert answered on
Dec 27 2021
Solution 1.
The world one most complex taxation system , Australian Taxation System consists of
nearly 125 taxes includes Commonwealth taxes like Income Tax, Capital Gains Tax, GST
and Fringe Benefits Tax. Australian Constitution, under section 51(ii) gives the
Commonwealth the power to impose and frame laws in respect to taxation which consists
of
Exclusive Powers related to Customs and Excise;
Concu
ent Powers related to Income Tax); and
Residual Powers related to State Taxes such as Stamp Duty, Land Tax and Payroll
Tax.
Fundamental Principles of Tax policy:
Equity, distributes the tax burden legitimately across the citizen of Australia, consists of
two fundamental horizontal and vertical equity. The former, refers that taxpayers at same
position pay same amount of tax whereas later refers that taxpayers at different positions
pay different amount of tax.
Efficient, taxes resource allocation decisions must contribute a strong and productive
economy consists of two elements: Administrative efficiency, tax should provide to the
government and should not be consumed by administration costs. Economic efficiency or
neutrality, tax is not discriminatory and ensures no alteration.
Simplicity, minimum uncertainty less compliance cost with simple tax design and
understandable.
Certainty, advance knowledge about tax liability, can formulate plans subject to related
provisions.
Neutrality, impact of taxes should not influence taxpayers‟ choices by altering, artificially
distorting, different modes of investment or activities.
Custom Duty (Import Duty)
Department of Immigration and Border Protection (DIBP) is responsible for Import and
export of goods in Australia, prior to this Australian Customs and Border Protection
Service take care of EXIM. According to DIBP, “Importing goods can help your business
meet its goals and provide goods to customers that may not be available locally” (Import
and Export, June 7
th
2017, para.1). As per the law, in Australia, Generally importers may
e companies or individuals require, no import licence to import goods. But they might
have to take permission and clearance for certain imported goods from customs, depends
on the goods nature, which is regardless of imported goods value. However, with subject to
safety or information standards, specific category and type of imported goods need
quarantine permits or may even be prohibited from being imported. (General information,
import goods, para.1)
To safeguard the local market from importers, Australian Government, Department of
Industry, Innovation and Science follows Anti-dumping and countervailing system
which try to find remedies of the injurious effects caused by dumping goods on Australian
industries which deemed to be unfairly priced.
Department of Industry submission related to anti-dumping system defines Dumping,
“when goods exported to Australia are priced lower than their „normal value‟, which is
usually the comparable price in the ordinary course of trade in the exporter‟s domestic
market‟‟(Australia‟s anti-dumping framework, para.2.3). Normal Value as per the
submission , “Where the price in the ordinary course of trade is unsuitable, „normal value‟
may also be determined using comparable prices of exports to a third country or the cost of
production plus selling, general and administrative expenses and profit”(Australia‟s anti-
dumping framework, para.2.4).
Australian industry producing like goods may be suffered by material injury which can
e caused by dumping goods. The Department of Industry explained, “Material injury
is typically demonstrated through prices, volume and/or profit indicators and is usually
eflected by the Australian industry suffering a material reduction in selling prices,
profit or market share. Material injury is considered to be above the normal e
and
flow of business” (Australia‟s anti-dumping framework, para.2.7).
To provide remedy caused through dumping goods, against material injury to local
market/Industry, Australian Government takes anti-dumping action as measure in the
form of imposing import duty and/or minimizing export price. Along with, countervailing
action is imposed on subsidy (Australia‟s anti-dumping framework, para.2.12). Australian
system works under WTO, World Trade Organization agreements, permits anti-dumping
action in form of imposed import duties affected by dumping goods or threatens due to
material injury to Australian market or industry.
Mr Dale Seymour, Australia‟s Anti-Dumping Commissioner, explained that “when
anti-dumping or countervailing measures are imposed: additional dumping and
countervailing duties become payable in respect of the exportation of those goods to
Australia for a period of five years, unless revoked earlier. Those duties are payable by
the importer of goods upon the entry of the goods into Australia … The purpose of
those duties is to level the playing field from a price perspective in the Australian
market … In simple terms, the uplift of the price of imported goods through the
imposition of an additional duty is meant to provide relief to Australian producers and
manufacturers” (Australia‟s anti-dumping framework, para.2.13).
Customs Act 1901 (the Act ), Part XVB Sections 269TB and 269TC , states the
equirements for drafting an application of a dumping or countervailing duty notice for
publication. Section 269TAG states that the Minister may also take initiation for an
investigation, if needed. Commissioner must be satisfied from the application matter
and any other information‟s required, to be relevant as per the prescribed rules. The
application complies under subsection 269TB (4) which relates only to Australian
industry that too like goods on the reasonable grounds for the publication of a notice.
The application should have supportive document not less than 25 per cent of the total
production or manufacturer of like goods in Australia (Dumping and Subsidy Manual,
April 2017, pg. 6-8)
Income Tax
Australian Government, principal revenue collection agency (ATO) Australian Taxation
Office, operates under the Public Governance, Performance and Accountability Act 2013,
within the Treasury portfolio, accountable under the Public Service Act 1999 states, that
Business can claim a deduction for most expenses incu
ed in running the business, until
and unless expenses are directly related to earn Business assessable income. Operating
expenses, working expenses or Revenue expenses such as Renting office premises, office
stationery, renting office premises, and wages or salaries are eligible for deduction as
incu
ed in running the business. Apart from these few operating expenses can be claim as
deduction in the same income year like advertising and sponsorship costs, bad debts,
electricity expenses, income tax obligations, employer super contributions, producing
assessable income or purchasing income-producing assets, tax-related expenses and many
more(other operating expenses, April 3
d
2017, pg.1). Advertising is to market business
through a variety of advertising mediums with in legal obligations of marketing which ensure,
not misleading the customers as well as ensuress all national and international regulations
are applicable.
Fundamental Rights
Australians Constitutions provides each Australian citizenship an extraordinary privilege,
ights and fundamental responsibilities. Australians enjoys Five Fundamental Rights i.e.
Freedom of speech, association, assembly, religion, and movement. Australian citizen are
free to speech within the boundary of the law. Free speech should be evaluated from facts,
not rumours, and constructive intention without harm. Freedom of speech, right is not an
excuse to harm others right. Citizens are free to join any legal organisation or group may
e trade union or political party, points of view is to have healthy and strong democracy.
Australian are free to meet other people and assemble and entitles to have free expression,
protestors without violent or...