GST and Insurance Taxation and Development

Question: Discuss about the GST and Insurance for Taxation and Development. Answer: Introduction: Australian taxation law principles gives a broader picture and understanding of Australian taxation system from a legal perspective. Such rules and principles make the analysis of fundamental elements of direct and indirect tax regimes of Australia. Australian taxation is regarded as incredibly complex and identified rules and principles brings much clarity to this area of law. Taxation law determines the appropriate basis of accounting and involves a substantial body of rules and principles as to amount of ordinary usage derived on each basis. There are some basic accounting principles and the board has approved a course in Australian taxation law for registering a tax agent (Morgan et al., 2016). It is essential to have completed two tertiary level unit.at the introductory level, only one level can be introduced. A new applicant is required to have completed course in Australian taxation law and have completed a course involving tax agent services act components. This also include the course of code of professional conduct (Dabner, 2015). It is necessary for the individual to complete a separate unit covering this component, if the course does not include a component in the above-mentioned act. When consulting with clients or any new member, it is necessary to determine whether the acceptance would create any threats to compliance regarding fundamental principles. When preparing tax documentation for individual, it is essential to gather client data and determining documentation preparation requirement. It is essential to have advice of qualified professionals so that they would assist in meeting regulatory requirements and reducing ongoing risks. Tax obligations of clients should be calculated in accordance with legislative and organizational requirements. Guidance and advice of from specialist is required for evaluating and moderating processes of decisions (Brown, 2017). Documentation needs to be discussed and confirmed for obtaining authorization, signature, and endorsement in order to ensure that all legislative requirements are met. In Australia, administration of taxation is governed by Australian taxation office, which is their primary source of revenue. There are various forms of taxation levied on individuals in Australia. This involves superannuation tax, corporate tax, tax on inheritance, goods and services tax, property tax, payroll tax, excise tax and income tax (Dabner, 2015). Corporate tax- Under this tax, corporates are required to pay taxes on profits earned by them. Federal government in Australia impose corporate tax at the flat rate of 30%. Corporate tax is paid prior to the distribution of profits to shareholders. Superannuation tax- Under this, taxes are charged at three points and the government levies a flat rate of 15% on superannuation funds. Employer contributes to superannuation funds and in Australia; it is regarded as pension program. Income tax- Different activities of government are funded by income tax and they are the main source of revenue generation. Income tax is levied on those individuals who falls under taxable group of people. Some of the different categories of income tax levied on individual residing in states include family tax benefit, low income tax offset and capital gain tax (Miller Oats, 2016). Excise tax- This tax is imposed by federal government on elastic goods such as alcohol, cigarette and petrol. Goods and services tax- This tax is mainly levied on individuals registered under Good and Services tax. Australian government imposes a 10% tax on supply of gods as well as services (Ato.gov.au 2017). However, there are certain transactions on which sales tax are not imposed. Some of the supplies that are exempted from paying taxes include medical services, export products, education services and food products. Property tax- State government activities is funded by some of the property taxes and this include industrial houses, residential complex and commercial complexes. Some of example includes stamp duty imposed by state on transferring of land and taxes levied on fire services. Tax on inheritance- There is no such tax called inheritance in Australia. Assets are subjected to capital gain tax in the event of acquiring assets. Business or entity needs to have procedures for capturing all the administration and obligations of tax. Risk concerning tax needs to be addressed by establishing an effective process for correcting oversights. Some of the key decision supporting tax treatment are documented at the time when they are made. Contemporaneous records of such decisions provide one of the crucial events of supporting tax treatment of major transactions (Krever Teoh, 2017). Tax records for individual documentation must be kept with written evidence from the date of lodging tax return and should be kept for five years. Records held by individual for simple tax affairs needs to be retained for two years. Some of the ethical issues that arise in tax case relates to filing year of current year return, conflict of interest between individual. It might happen that some of the report or deduction in the current year might make the individual suspicious about wrong reporting by taxpayers. Ethical issues concerning conflict interest would be solved by using engagement letter. Another ethical issue in documentation of individual taxation is bet the business issue that the chief executive officer and shareholders would like to discuss as quickly as possible (Dixon, 2016). When deriving the accessible income and the expenses relating to that are deductible to the extent they are incurred in producing or gaining assessable income. For taxable income calculations, expenses that are to be deducted involves royalties, management fees, interest confirming to commercial standards. Offsets might relates to tax losses. Such losses may be utilized and carried forward to offset future assessable income. Offsetting capital losses would generate assessable income including net capital gains. Income tax are the principal taxes levied in Australia and this include tax on capital gain. Taxable income of any form of operations is subject to income tax rate of company. The foreign income tax offset rules allows taxpayers to claim a tax offset. Under the alternative arrangement, the income for Australian tax purpose exceeds the income for Australian tax purpose under the actual agreement (de Cogan, 2015). Reference: Brown, K. B. (2017). Taxation and Development-A Comparative Study. Dabner, J. H. (2015). The Australian tax office/tax profession partnership: Lessons from a pilot interview program. de Cogan, D. (2015). A changing role for the administrative law of taxation.Social Legal Studies,24(2), 251-270. Dixon, B. (2016). Land transactions and the new Australian foreign investment regime.Australian Property Law Journal,25(1), 55-68. Krever, R., Teoh, J. (2017). GST and Insurance: Australia. InVAT and Financial Services(pp. 319-335). Springer Singapore. Miller, A., Oats, L. (2016).Principles of international taxation. Bloomsbury Publishing. Morgan, A., Mortimer, C., Pinto, D. (2016). A practical introduction to Australian taxation law 2016. Provision of general purpose financial statements by significant global entities. Ato.gov.au. (2017).Retrieved 19 March 2017, from https://www.ato.gov.au/general/consultation/what-we-are-consulting-about/papers-for-comment/provision-of-general-purpose-financial-statements-by-significant-global-entities/