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The Australian Goods And Service Tax (GST)

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The Australian Goods and Service Tax (GST) is a broad-based consumption tax added to the price of goods and services and ultimately paid by the final consumer. The Act necessitates businesses to administer and remit the tax amounts to the Australian Tax Office (ATO). The current rate of goods and service tax stands at 10%. Authored by Kavita (2011), this study critically appraises the financial supply provision stipulated in the Goods and Services Tax Act of 1999. This critique explores Kavita’s (2011) arguments and evaluates the ideas in his critique as far as taxation of financial services is concerned.
The Article’s Summarized Issues
In this paper, Kavita (2011) explores the reasons why the Australian Tax Offices (ATO) decided to treat …show more content…
I also believe that listing the areas that ought to be input taxed in the law is problematic since any addition into the list will require an amendment. Therefore, Kavita (2011) offers a wonderful solution by suggesting a principle-based approach that relies on an appropriate interpretation of principles to apply the law. I share the same thought since the Treasury and the Judiciary can use the principles to handle issues related to other similar financial services. Such principles will also allow the Australian Tax Office to add new related financial services to the list without necessarily having to amend the taxation …show more content…
There are several multinational financial services providers across Australia. In my opinion, Kavita (2011) should have explained the application of the input tax for domestic and international players. It is necessary to know how other countries tax financial services to understand better whether the Australian Tax Office is using a better or worse taxation method. In addition, it was important to explain how Australian multinational companies apply the input tax in Australia and a different taxation in other

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