Explain the importance of “PAYG Tax collection system” in Australia ! please put 3 references

Answered: Explain the importance of “PAYG Tax…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Explain the importance of “PAYG Tax collection system” in Australia !

please put 3 references

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Step 1

A New system of Taxation introduced the new Pay As You Go ("PAYG") tax collection system which was announced by the Government in its "Tax Reform: Not A New Tax, A New Tax System" paper that was released in August 1998.

The purpose of the new PAYG system is to standardize as well as simplify the withholding tax as well as tax installment laws. The stated aims are as under:

To align the dates of payment for various taxes that the business taxpayers used to pay.
To allow the business taxpayers to pay one tax payment on per quarter basis and
To combine the existing withholding tax systems into a single system.

Allowing the tax payments to be made under the "one payment system" would tend to reduce the overall costs to the business while meeting their compliance obligations.

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