Tax accountant based in lane cove helps around tax filing and tax returns rather than the preparation of financial statements. Taxation policies devised by the government influence an array of economic factors- employment levels, the balance of trade, Inflation levels, etc.
Tax rates vary for the different kinds of taxpayers. Generally, we identify taxes as either progressive or regressive after comparing the amount of tax paid with the individual’s income.
Progressive taxes are the taxes in which the proportion of tax rises with the income. Income tax is a good example of progressive tax, as income of any individual increases, they are required to pay higher amounts of tax than the other individuals earning relatively lower.
Regressive taxes are the taxes in which the proportion of tax is inversely proportional to the income. The less the income of an individual, the higher the taxes he would have to pay. The sin taxes on tobacco and gambling are a classic example of regressive taxes where the individuals with lower incomes are highly affected as more of the tax burden falls on them.
Types of taxes
1. Income tax: It is the tax paid on the income by every working individual. The ranges of taxes vary from 0%, 19%, 32.5%, and 37% depending on the income.
2. Capital gains tax: It is paid on your net gains when you sell or dispose off your assets.
3. Corporation tax: It is the tax paid by companies on their net income. Both public and private companies are liable to pay this tax.
4. Goods and services tax (GST): GST is the tax imposed on the goods which are sold to the general public for consumption. It is the consumer who pays the tax, yet it is collected by the business who sells the goods and then, later on, submit it to the Government. It is safe to say that the businesses which sell the commodities act as an intermediary between the consumer and the Government of Australia.
Direct Taxation VS Indirect Taxation
A direct tax is a tax that is paid directly by the individual or Corporation on whom it is imposed by the Government. Few examples of the direct tax are Income tax and Corporation tax.
Indirect tax is a tax that is paid through an intermediary to the Government. A classic example of an indirect tax is the GST tax. The business which sells the goods collects the tax from the consumer and then later submits it to the Government.
You can file for your tax returns and payments or you can hire our professional tax accountant to help. At Easy tax, we aim to provide our best services to every client, especially to those who do not know a lot about taxes. We calculate your taxes for you and advise you about which of the tax methods would suit your business the best.More information to follow”. https://www.easytax.com.au