TAXATION LAW Taxation Law



Taxation Law

Introduction

Almost everyone in the Australia has to pay income tax, except for some people who are exempted. Those who pay must be aware of the tax system in detail. After numerous ad hoc changes in its structure, the tax system was developed in the Australia (Johnson, 2006). The description of the tax system is not made in terms of the marginal rate schedule that taxpayers are obligated to pay. This makes it difficult for people to understand the complex tax system. The government should have made the description such that it would explicitly describe the system in terms of the marginal rate schedule. This would simplify things for the general public. The goal of each and every business is to improve its efficiency and effectiveness, as well as, offer the best value to their customers. The customers are internal and external ones, with the internal being the employees (David, 2004).

Discussion

Taxation tax is the largest source of revenues for the government, followed by the National Taxation Contributions. The smallest contribution in terms of revenues for the government comes from corporation tax. From April 6 of one year to April 5 of the next year is the period of the tax year. The previous tax year was April 6 2010 to April 5 2011. The dates of the tax year are quite odd, but they have been like this since the mid- 18th century. Australia adopted the Gregorian calendar in September of 1752, replacing the Julian calendar. There was a difference of 11 days between the two calendars, but the tax authorities did not want to lose out on the 11 days of tax revenues. Hence they set the odd dates for the tax year (Olmert, 1996).

Another name for the tax year is Fiscal Year, but it is different from the Financial Year. The Financial Year is used for the purposes of corporation tax. The period of the Financial Year is from April 1 to March 31 (David, 2004).

Tax

A tax is a payment made to the government by an individual who has earned certain amount during a year. Income tax is a most important basis of income to the government. In other words it is an amount charged by a government on products, income, or activities. There are two types of taxes direct tax (which is charged on personal and corporate income directly) and indirect tax (which is charged on the prices of services and goods) (Olmert, 1996).

Taxation

Taxation is a set of rules as in when it should be paid, who pays the tax to whom and how much is the tax to be paid. Taxation is a process or means by which the ruler increases income to settle the required expenses of government, through its law-making body. Defined in another way, it is a method of allocating the expenses of government among those who are privileged to have the benefit of its facilities and must, therefore, bear its load (keen, 2002)...