Page 1265 - Week 04 - Thursday, 21 April 1994
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(2) Tax equivalent payments only relate to sales tax. No company tax liability has arisen yet.
(3) (a) $183,000.00 (estimate).
(b) Yes, see 1(c). _
(c) Yes, see 1 (c) .
(d) Monthly to 30 June. _
(4) Sales tax is payable on the last wholesale sale, which in most cases will be the sale made by the wholesaler to the retailer. Generally this means that Totalcares competitors pay, where applicable, a tax inclusive price. Totalcare purchases taxable supplies at a tax exempt price but forwards tax equivalent payments to the ACT Government on a monthly basis. This would approximate the advantage to Totalcares competitors which could be expected to have credit facilities provided by their suppliers.
Tax equivalent payments by Totalcare are calculated on the same basis as other firms in the industry, that is, the wholesale value of taxable supplies.
(5) The method of calculation of liability is the same method as adopted by other taxpayers, namely Totalcare complies with the relevant taxation legislation, the generally accepted accounting principles and meets the requirements of the Australian Accounting Standards.
(6) See answers to 2 & 4 above.
(7) Totalcare is subject to an audit by external auditors on an annual basis. In addition it will be audited by the ACT Revenue office as part of the routine compliance program. Totalcare is subject to all requirements and obligations of the various tax laws, including additional tax, as apply to other taxpayers.
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