fruitpunch
Member
How does company taxation influence businesses ?
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company tax (1 Viewer)
- Thread starter fruitpunch
- Start date
englishsuckswrstsubject
New Member
- Joined
- Dec 4, 2020
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- HSC
- 2021
If you have to pay company tax, that reduces your profits. Furthermore, if a business fails to pay company tax or does any sort of tax evasion, they will be tracked down by the ATO and will face sanctions.
In addition to the above, company tax can be reduced. This also presents an influence on businesses as it would see more incentives for businesses to retain profits and use those additional funds to grow, which will eventually render Australia a more attractive destination for foreign investment, creating new job opportunities and ultimately higher economic growth. This is evident as with the government's changes to company tax. Prior to 2017, the company tax rate was 30%. However, in the 2016–17 Budget, the government announced that it intended to progressively reduce the corporate tax rate to 25%. From the 2016/17 tax year, the company tax rate was reduced to 27.5% for small businesses with a turnover lower than $10 million.
I hope this helps!
I hope this helps!
fruitpunch
Member
Thanks !