Tax Obligation
Why do we need to pay taxes?
Taxes are used to pay for public infrastructure and services that we normally use.
Mr. K, a businessman, is currently liable for taxes in multiple different states in Australia, what factor(s) cause(s) that?
The size or/and the location of your business.
Why do we need ABN? (List 2 reasons)
Complete a business activity statement, report your GST and claim GST credits if you are registered for GST
Confirm your business identity to other businesses and people when ordering and invoicing
Claim energy grants credits
Obtain an Australian internet domain name.
Mr. K is required to withhold tax from wages and salaries he paid to his employees. Why?
Businesses must forward the withheld tax money to the ATO at regular intervals.
List two things a business must do when it ceases trading or has been sold.
Firstly, meet all lodgment, reporting and payment obligations it has with government agencies. Cancel any registrations that will no longer be required. This may include the ABN.