Question 2.

Research tax law compliance and outline statutory requirements related to each of the following:

Tax Requirements

(a) Goods and The goods and services tax (GST) are a value-added tax levied on most
Services Tax goods and services sold for domestic consumption. The GST is paid by
consumers, but it is remitted to the government by the businesses
selling the goods and services.
 The goods and services tax (GST) are a tax on goods and services
sold domestically for consumption.
 The tax is included in the final price and paid by consumers at
point of sale and passed to the government by the seller.
 The GST is a common tax used by the majority of countries
globally.
 The GST is usually taxed as a single rate across a nation.

(b) Payroll tax Payroll taxes are taxes imposed on employers or employees, and are
usually calculated as a percentage of the salaries that employers pay
their staff. Payroll taxes generally fall into two categories: deductions
from an employee's wages, and taxes paid by the employer based on
the employee's wages.

(c) Income tax Income tax to be paid annually. Tax form to be completed and lodged
by 31 October each year. For companies, the current tax rate on
assessable income is 30%.

(d) Fringe Fringe Benefits Tax (FBT) is a tax payable by employers for benefits
benefit tax paid to an employee (or an employee's associate e.g., a family member)
in place of salary or wages. This is separate to income tax and is
calculated on the taxable value of the fringe benefits provided.

(e) PAYG PAYG Withholding payable – is the money owing to the ATO from taxes
withholding withheld from employee salary and wages.
payable

(f) Company tax The Australian Tax Office (ATO) requires businesses to submit a
business activity statement (BAS) monthly, quarterly or annually
(annual GST return, if eligible). It is used to report and pay goods and
services tax (GST), pay as you go (PAYG) instalments, PAYG withholding
tax and other tax obligations.