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Peter C2 years ago

Taxation — It Goes Up, Not Down, It Makes the World Go 'Round

Strap yourself in for the most exciting article on tax you’re likely to read today. It’s worth a few moments considering the merits of taxation — bearing in mind the accepted wisdom that nothing is more certain than death and taxes. Not to be dismissive of the merits of death, especially before dishonour, let us proceed…

Once Upon A Time…

From a historic perspective, taxation was conceived even before your grand-daddy. It goes back thousands of years. This is not your so-called First World problem.

Some 3000 years ago, they were levying taxes in China. Pharaohs in Egypt handed the job of fund-raising to their scribes, who then went about taxing, among other things, household cooking oil. In the Book of Genesis, the Bible makes mention of pharaohs who collected a 5th of all crops.

Ancient Greeks used taxes to pay for the gift that keeps on giving — war. In neighbouring Italy, Julius Caesar is credited with the concept of sales tax.

The Vikings came up with a different approach. Their tax took the form of ‘protection money’ and, in exchange for not looting Paris and London, the fierce Scandinavian tax collectors reaped tons and tons of silver.

Tax Gets Personal

Personal Income Tax paid for war against Napoleon
In Britain, personal income taxes funded war against Napoleon Bonaparte.

The sophistication and pervasiveness of taxation escalated quickly. As you can imagine, the punters doing all the tax-paying were not exactly thrilled. In 1789, some of them volunteered an outpouring of heartfelt emotion now known as the French Revolution.

Meanwhile in Britain, personal income taxes were introduced to foot the bill for a war against Napoleon Bonaparte. These taxes were supposed to be a “temporary” measure. But on the 5th of April of every year since, the British Parliament has renewed this legislation.

Taxation in Australia

It's tax time in Australia after June 30 each year
In Australia, our highest rate of income tax is only lower than Sweden’s and Denmark’s.

More relevant to you in Australia is that, each year after June 30 (end of financial year), the ATO (Australian Taxation Office) expects you to furnish it with an accurate reporting of your income and expenses.

Legally binding documents are involved in formalising this report and ratifying its figures. One of the possible outcomes for anyone who fails to give this responsibility its due respect is jail.

Income tax is a way for you to contribute to your society’s welfare and infrastructure — emergency services, roads, bridges, hospitals, schools and so on. So paying your dues does have rewarding outcomes.

Perhaps even more rewarding is the national sport of juggling the numbers so you contribute as little as possible. As the system is geared to tax your actual income, no guilt is involved. (Guilt does enter the picture, however, if you’re found defrauding the tax system.)

Win-Win Tax Returns

Tax Returns Are a Win-Win

The money you spend to make your income possible is an important consideration. An allowable portion of that money is not taxable. Tax experts know exactly what can be ‘claimed’ back from the ATO.

These experts can provide you with a saloon passage through the ATO’s computations. Their assistance can put you on the receiving end of a welcome refund from the Tax Office.

Passing your tax obligations to a reputable tax consultant is, in itself, a tax deduction. It’s a win-win situation — the tax consultant gets your tax return done right; you pay them; in return, the ATO pays you back.

What’s your next step? Try searching LocalSearch for Tax Consultants in your area.

For instance, check out all tax consultants in Dubbo. Or simply contact one of our recommended tax consultants:

H&R Block Tax Accountants

The advantage with H & R Block is guaranteed pricing. You’ll know upfront what it will cost before your income tax return is done.

Services include:

  • Upfront fixed fee for income tax returns
  • BAS reports done for you
  • Up-to-date tax law advice

Get your tax worries out of the way and contact H&R Block today.

 Glenn T Green Accountants & Taxation Services

At Glenn T Green, you get the benefits of 25 years of accounting expertise as well as personal, friendly service. In addition to your tax return, you also get extra accounting services at your disposal.

Services include:

  • Personal & business tax returns
  • Liaise with ATO on your behalf
  • Full accounting services including business management advice

Talking to the team at Glenn T Green Accountant & Taxation Services about your tax will give you peace of mind.

[Related: 3 Tips That’ll Take The Stress Out Of Your Tax Return]