Indirect taxes are taxes paid directly by a business or individual that is not taxable by income, profits or losses.
Indirect tax revenue varies widely depending on the type of business or person, and the number of customers, customers, suppliers, employees and suppliers in the business.
Independently managed companies, companies that are controlled by a corporation, partnerships and limited partnerships can usually avoid direct taxes by having their employees and employees’ families take part in the taxation.
Indispensable businesses, businesses that provide services, such as food and clothing, may also be exempt from direct taxes, although the tax on such services may not be as high as for a business in which the services are owned directly.
The government also provides some indirect tax relief to small businesses through its Small Business Tax Relief Scheme.
Direct taxes can be very difficult to track because indirect taxes are not included in the official statistics.
For example, indirect taxes paid on business supplies to the government, for example, may be not included when the tax is calculated on the value of the supplies.
Tax avoidance is not the only way businesses avoid direct tax, of course.
Many business owners, employees, suppliers and employees are able to reduce their tax bill by using the GST (Goods and Services Tax) deduction, the refundable portion of the GST, to offset the tax that is deducted from the business income.
This can save business owners millions of dollars over time.
The GST refund is available to businesses in every state and territory and can be used to lower their tax bills by up to 50 per cent of the amount of the tax withheld.
Tax relief from the GST can also be claimed for business transactions.
In some states, this is known as a Business GST (Business Tax Relief) Scheme.
This scheme offers tax relief for businesses that pay GST on their GST payments.
Businesses can claim GST refunds for up to 10 per cent.
The amount of tax relief can vary depending on which business tax rules apply.
In NSW, for instance, a business that pays GST on all its supplies, even if it is a small business, may have a GST exemption amount of up to $10,000.
The Tax Office will check that this is the right amount to claim.
If the business is able to claim more than $10.00, it can claim the greater of the $10 and the GST rate.
The maximum amount of GST refundable for the GST exemption is $10000, which can be claimed only if the business pays the GST on the GST paid.
A business may be eligible for a GST refund for its GST payment if it pays more than the GST rates, whichever is greater.
If a business is not eligible for an GST refund, it may still be able to get the refund through the Business Tax Simplification Scheme.
The Business Tax Reduction Scheme is a way to make the GST refund less complicated.
It allows businesses to claim the GST as a refund for their GST liability when their GST refund has been reduced by a higher amount.
A Business Tax Recovery Scheme allows a business to recover GST payments made on behalf of its customers.
Business owners can claim up to 20 per cent GST on GST payments for customers of the business, up to an annual limit of $100,000 per business.
The New South Wales Government has an online tool to help businesses claim GST for GST payments they make to customers, which provides further information on how to claim GST.