Essays on Opinion of Taxation Loopholes in Australia Case Study

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The paper 'Opinion of Taxation Loopholes in Australia" is a perfect example of a finance and accounting case study. Australian taxation structure is one of the difficult to deal with globally. It is composed of about 125 taxes that include commonwealth taxes such as income tax, capital gains, fringe benefits and goods and services. There are many companies that engage in a recreation of diverse and wide-ranging roles within this taxation structure to ensure the integrity of the taxation structure which include the equitability of all Australians under tax scheme in Australia.

Thus, this is vital in making organizations realize how the taxation system works within the Australian community (Cao et al. , 2015). The authority under the Australian bill provides security to both states and the public from the commonwealth relatively to their control to levy taxation and formulate laws. A Further constitution limit is enclosed in section 55 of the constitution and this grant that laws daunting taxation will contract only with the obligation of taxation and any condition that deal with any issue shall have no result. This will guarantee commonwealth regulations with relation to income tax is enclosed in separate acts, the assessment law concerned with the valuation and collection of tax and the evaluation Act which impose the taxes and secure the rate of tax (Borrego et al. , p. 338, 2015). Corporations pay less tax than Aussie workers According to Sloan, (2015), the Australian state faces new calls to reinforce set of laws as journalists globally expose more facts on how global multinational organizations transfer earned income around to world to evade payment of Australian taxes.

Pushing this problem back to the public interest was the disclosure that the largest coalminer in Australia Glencore avoided paying tax for more than three years although they made a profit of $14 billion.

However, additional information appears that most of the major companies operating in Australia pay a lesser amount of 10% tax (Hemmings et al. , 2015). A set of more than 80 news correspondents from 26 various countries lately exposed the scope of how companies use the tax laws and collect official mails to excuse them from taxes in Luxembourg which then become a scam to evade levies in other nations.

International companies transfer their profits to other bureaus and their auxiliary organizations in states with low tax tariffs such as Bermuda, British Virgin Islands, Singapore, and Luxemburg while at the same time transferring their amount overdue to high tax jurisdiction such as Australia, where they obtain superior assumption for debts or operating cost (Sloan, 2015). The complexity of companies’ structures and loopholes are made up of large consulting firm such as (PWC) price water house coopers concerned in current media reporting and brains behind some corporate tax evasion designs. Australia widen legislations to end more companies for tax evasion According to Burnett, (2012) the federal administration has enlarged the scale of legislation designed to deal with global tax evasion, increasing the number of multinational companies under the Australian Tax office’ s scrutiny from 30 to 80.

The Australian government publicized financial plan actions that will permit the Tax Office to obtain data on multinational companies that have global profits of more than $1billion. The legislation was initiated in parliament to develop the reliability of the tax structure by closing loopholes that will allow multinational companies to evade paying their usual allocation of tax (Damayanti et al. , p. 180, 2015).

The government needs laws passed in time for the regulation to come into effect. The aim of ATO is to control and shape the revenue system that upholds social and economic strategy and fund services for Australians. Their main responsibility is to oversee legislation for taxes and excise duty. The office also tackles expansive issues that affect Australian revenue systems such as debtors, tax plans and globalization.



Borrego, Ana Clara, Ern Chen Loo, Cidália Maria Mota Lopes, S. Ferreira, and Carlos Manuel. "Tax professionals’ perception of tax system complexity: Some preliminary empirical evidence from Portugal." eJournal of Tax Research 13, no. 1 (2015): 338-360.

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Burnett, Chloe. "Part IVA that Goes the Other Way; the Rule against Double Taxation, A." Austl. Tax F. 27 (2012): 467.

Cao, Liangyue, Amanda Hosking, Michael Kouparitsas, Damian Mullaly, Xavier Rimmer, Qun Shi, Wallace Stark, and Sebastian Wende. The Treasury, Australian Government, 2015.

Damayanti, Theresia Woro, T. Sutrisno, Imam Subekti, and Zaki Baridwan. "The Role of Taxpayer’s Perception of the Government and Society to Improve Tax Compliance." Accounting and Finance Research 4, no. 1 (2015): p180. New York.

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