Question

With reference to relevant legislation, case law and secondary sources, briefly explain different functions of taxation. (according to australian legislation ) provide the caselaw

i know this is not related to accounting but when i tried to select the subject its nothing related to taxation so i selected accounting

Answer 1

There are  main functions of taxation

1) The main function of taxation is the fiscal one. It is through fiscality that taxes play their role in the formation of the state budget necessary for the realization of national and holistic state programmes. The fiscal function provides for the achievement of the main social goal of taxation – the formation of the state’s financial resources necessary for executing the role of the latter (defense, social, environmental protection, etc.)

2) The allocation function of taxation expresses their essence as a special centralized instrument of allocation relations and consists of the social income redistribution among various groups of citizens: from wealthy to deprived ones, which ultimately provides for the assurance of the social stability of the population.

3) The regulatory function of taxation was initiated as soon as the state started to take active part in the economic set-up of the society. This function is aimed at achieving specific goals of the taxation policy through the taxation mechanism.it includes the sub function of a)stimulating and  is aimed at the development of special socio-economic processes, and is implemented through a system of allowances, exemptions and preference arrangements.destimulating sub-function inhibits some socio-economic processes through the conscious exaggeration of the taxation burden. As a rule, the effect of this sub-function is related to the introduction of excessive tax rates. And c) regeneration function is by taxing the utilization of natural resources, roads, mineral and primary resources, the state uses these proceeds in order to regenerate the exploited resources.

4) The controlling function of taxation – through taxation, the state controls the financial-economic activity of juridical and natural persons. This also contributes to controlling the sources of income and the directions of spending.

5) The incentive function stipulates special taxation arrangements for a certain group of citizens, who are social achievers (participants in wars, etc.). This function of taxation has a social facet.

The main Commonwealth Acts (the links below take you to the official legislation on the open access Federal Register of Legislation database) concern:

• the payment of income tax by individuals and companies - the principle legislation is the Income Tax Assessment Act 1936 (ITAA 1936) and the Income Tax Assessment Act 1997 (ITAA 1997), and the Fringe Benefits Tax Assessment Act 1986.
  • The 1997 ITAA was originally intended to replace the 1936 ITAA, but currently both Acts still operate concurrently.
  • The ITAA 1997 includes the capital gains tax rules, as gains are assessable income.
• the payment of goods and services tax - A New Tax System (Goods and Services Tax) Act 1999 (the GST Act).

Plaintiff S4/2014 v Minister for Immigration and Border Protection

Migration – Refugees – Minister decided to consider whether to exercise power under s 46A(2) of Migration Act 1958 (Cth) to permit plaintiff to apply for protection visa – Plaintiff detained while Minister's department inquired into plaintiff's eligibility for protection visa – Minister's department determined plaintiff satisfied requirements for protection visa – Minister made no decision to permit or refuse to permit plaintiff to apply for protection visa – Minister exercised power under s 195A(2) to grant plaintiff temporary safe haven visa and temporary humanitarian concern visa – Temporary safe haven visa engaged bar imposed by s 91K on making valid application for protection visa – Whether grants of temporary safe haven visa and temporary humanitarian concern visa invalid – Whether decision to grant temporary safe haven visa severable from decision to grant temporary humanitarian concern visa – Whether Minister bound to permit valid application for protection visa – Whether Minister bound to determine how s 46A(2) power will be exercised.