Meaning And Purpose Of Taxation Essay

Question:

Discuss about the Meaning and Purpose of Taxation and Impacts on the Australian tax.

Answer:

Meaning and purpose of taxation

Taxation is referred to coercive or compulsory collection of money by the levying authority. The government regulatory authorities impose a tax on the income of individuals or companies. The government uses the taxation to discourage or encourage economic decisions. The taxation term is applied to all involuntary levies. Taxation is different from other forms of payments such as the market exchanges (Avi-Yonah, 2007). The government induces taxation through the explicit or implicit threat of force. The tax system and process are different in different countries. Taxation in the modern system occurs on both the physical assets such as specific events and property. The formulation of the tax rules and regulations is of the most contentious and critical issue in the modern politics. The primary purpose of the taxation is to enable the government to collect funds and use the resources for the welfare of the public. The government uses the tax funds to support the expenses relates to technology and building infrastructure, public safety, military programs, education and environmental protection. Local, state and national governments collect the tax amounts to stabilize the economy of the country. The collection of the tax revenues ensures that the government has enough to meet the needs and provide protection to the citizens. The other main objective of taxation is an equal distribution of the wealth among the citizens. The tax funds are also used to support the regulatory bodies, build defenses and raise armies. The proponents of taxation progressive levels on the high-income groups argue that tax encourages equitable society. The tax on specific goods and services such as gasoline or tobacco have been justified as the limiting on consumptions.

Smart autonomous robot

As per the Paragraph 1 of the Australian Taxation law, the motion of the resolution is depicted to be suggesting that the smart autonomous robots are conducted by showing the appropriate subcategories which are being considered as the form of the intelligence reports. It is depicted to be showing the acquiring of the autonomy by the help of the sensors, and also the engaging of the connectivity is being determined by showing the appropriate construction of the trades and the analysis of the types are being considered in the form of the data (Cockfield, 2016). It is also identified as the self-learning which is showing to be illustrating the enhancement of the work and also the explanation of the work. It also explains the appropriate way by showing the illustrations of the work which is being made by showing the enhancement of the work and also the explanation of the work is being made by showing the explanation. The adaptations made regarding the behavior are showing the various actions regarding the environment of the study. It also explains the structure which is showing the enhancement of the study and also the common definition as explained in this case is depicted to be illustrating that the robots are not any real consensus (Engdahl, 2011). The terminological definition can be easily provided by illustrating the explanation of the subject which is being used for showing the explanations of the ability which is being defined as the structure of the work. The considerations are provided by showing the complex notions which are being used for showing the explanation of the study which is depicted to be showing the operational autonomy. Thus the complex notions can be easily defined by the Recital R in the motion of the resolution as undertaken in this study (Woellner, Barkoczy, Murphy, Evans, & Pinto, 2016).

Impacts on the Australian tax base

The advent of advanced technologies has brought significant changes in the business world it revolutionized the business world by providing substantial facilities that improve the efficiency and accuracy of the core operational activities of the business organizations. Moreover, as the technological advancement provides significant advantages to the business communities, the entire business organizations are installing these technologies within their organization in order take the opportunities and advantages given by the advanced technologies (Barker, 2007). In this matter, the latest computer technologies, the internet, along with information and communication technologies are most important as these provide significant contribution to improve the efficiency of the business as well as provide substantial advantages to the business organization. It leads the automation of the industry sectors as well as in this context the advent of robotics technologies plays vital role it helps in automating the operational activities of the business organization. The entire sectors are taking the advantages of the automation and the advanced technologies, but the manufacturing sectors especially apply these technologies in order to improve the efficiency of the business. The advanced technologies especially the robots help in improving the efficiency of the manufacturing sectors as it helps in improving the production of the business organization. The use of robot along with other business automation processes improve the efficiency of the operational activities of the business organization, and it has dropped significant impact on the production of the business organization as well as the whole process of the business organization. Therefore, with the help of the robots as the efficiency of the business organization improved thus, the productivity of the business organization is also improved and so as the profitability of the business is also improved (Krever, 2007). As a result, the sustainability quotient of the business organization is also improved with improved profitability.

In this context, all the business organization is intended to deploy an effective robot within the organization that can perform more jobs at a time with required efficiency and accuracy instead of recruiting human employees. Hence, the requirements of the human employees are gradually reducing, and the managements of the business organizations are trying to deploy robots instead of human employees. It has brought significant impact on the society various systems of the government as well as society are also affected considerably. Furthermore, it has brought significant risk to the workforces across the countries (Von Glahn, & Taulbee, 2017). The developed countries have felt more impact of the robotics and the advanced technologies. Moreover, as per the CSIRO reports, it is predicted that at least 50% of the Australian workforces are at risk due to the computerization plus automation.

In this context, various systems of the government will feel the impact of this computerization as well as automation of the business world. Furthermore, the taxation system of the government, which is one of the most important systems will feel the impact even more. The reason behind this is that the robots are getting the jobs the human employees used to do. The human worker, currently placed in the post of proposed robots earn income from his/her activity within the business organization. Moreover, he/she pay tax on the income he/she earned from the job as income tax, which one of the important tax and significant tax resources for government fund. Apart from the income tax, the individual workers pay social security tax as well as other levies as per the rules and regulation prescribed by the Australian Taxation Office (ATO). In the case of the robotics and automation, the government may miss the taxation payments so huge amount of taxation wealth will be reduced.In order to reduce the impact of robotics and automation, the government should impose the tax on the robots as the government taxed on the human workers.

Tax on autonomous robotic workforce

The smart autonomous robotic workforce should be taxed, and the companies that are using the technology should pay the tax on the income generated with the help of the robots. For example, if the workers do $100000 of work in a company that income is taxed and if the robots carry out the same thing, then they should be taxed at the similar level. Thus, it can be stated that if the robots carry out the same work, then the government should tax the robots at the similar level. The companies would be responsible for paying the tax on behalf of the robots. According to Bill Gates, the tax revenue will come from the companies that are using the robots and not employing human workers (Fahimi, 2010). The tax can be levied against the companies that the develop the robots. He has also stated that the tax revenue can be used to help the people who have lost their jobs due to the increase in the use of the autonomous robotic workforce. The companies are generating income and profits from the use of the robots, and they should pay the tax. If the companies will not pay tax, then there would be an unequal distribution of income and increase in unemployment. The tax revenue will be used for helping the people who need help. The government of Australia should impose a tax on the companies that are using robots and developing the machines for their own purpose. The people in the country will lose their jobs if the companies use the machines as well as they will not pay tax for the welfare of the people. The consequence will be negative as the companies will carry out their jobs for their own benefit. The autonomous robotic workforce can work 24*7 that will increase the profitability of the company (Macintosh, 2011).

The co-founder of the Microsoft is saying that the resources and the labors must be replaced by the automated machines which are depicted to be redirected towards the framing of the work which is being used for showing that the essentiality is being made by showing the redirections of the roles. The enhancement of the taxation system is being implemented for the purpose of showing the enhancement of the taxation system by increasing the flow of the work (Gifford, 2013). The advantages though can be easily gained, but still, the structure is depicted to be showing the enhancement of the structure of the study as it is being illustrated in this case. The companies that are involved in the formation of the structure is determining the appropriate purpose of describing the increment of the income for the various companies. But the studying of taxation system is showing the appropriate illustration of the robotic workforces that suits the best levels of the organization, and also it enables the establishment of the appropriate structure for showing that the income tax must be collected from the work made by the robots (Hockett, 2009). The adjustments are made by the Bill Gates by the declarations made that the income made from the robots will be taxed and also the distribution of the tax will be made on the average income made from the robot on the monthly basis. This will also show the efficient taxation system which will be ever implemented on the terms of the goods and the services. It can be easily taxed by showing the appropriate taxation system which must be appropriately involved by showing the enhancement of the study in a unique way and also is enabled to define the values that are requisite for the enhancement of the study. This simply is explaining the appropriate structure of the robots in an appropriate way which will show the appropriate formation of the taxation in the form of the goods and the services which will be provided by the robots. This will enable the companies to show the growth in the country and also will be enabled to define the appropriate characteristics as undertaken for determining the case. This the human empathy is being determined by showing the formation of the taxation system as launched in this system and also the unique characteristics can be implemented in the form of the taxation system as defined by the Bill Gates (Woellner, 2007).

Bill Gates also believe that the best solution to the issue is to make the autonomous robots to pay their shares. The economy should depend on the workers that will contribute to the healthy economy and development of the people (Oppenheim, Jennings, & Watts, 2008). The tax treatments should be based on the income generated by the companies and need of the people in the economy. The tax revenue will be used for providing special assistance and care to the children and elderly people (Shaw, 2003). The companies that are using robots and developing robots will pay the tax on the basis of the profit generated by the company from the utilizing of the autonomous robotic workforce. It has also been stated by Bill Gates that will not hamper the innovation. The government should implement rules and regulations for imposing a tax on the companies. The regulatory bodies should be responsible for imposing tax on the autonomous robotic workforce. Many regulatory authorities have rejected the tax on the company with the view that it will impose a negative impact on employment and competitiveness.

Depreciation

Depreciation is the accounting method to allocate the cost of the assets over the useful life. The organizations depreciate the long-term assets for accounting and tax purposes. The depreciation shows the exact value of the assets that are used over time (Woellner, 2005).

Purchasing cost of the robotic machine= $500,000

Market value = $300000

Depreciable amount of the robotic machine= $500,000 - $300000

= $200,000

Depreciation expense = $200,000/8

= $25000

The depreciation expense of the robotic machine has been calculated by using the prime cost method. The prime cost method assumes that the value of the depreciating asset diminishes uniformly over the effective life. The purchasing prices, market value and useful life have been given for the machine (Woellner, 2013). The depreciation expense of the machine is $25000.

References

Avi-Yonah, R. (2007). International tax as international law. New York: Cambridge University Press.

Barker, D. (2007). Essential Australian law. Abingdon [u.a.]: Routledge/Cavendish.

Cockfield, A. (2016). Globalization and Its Tax Discontents. Toronto: University of Toronto Press.

Engdahl, S. (2011). Taxation. Farmington Hills, MI: Greenhaven Press.

Fahimi, F. (2010). Autonomous robots. New York: Springer.

Gifford, C. (2013). Technology. New York: Scholastic.

Hockett, R. (2009). Law (1st ed.). Chicago: Chicago Review Press.

Krever, R. (2007). Australian taxation law cases 2007. Pyrmont, N.S.W.: Lawbook.

Macintosh, C. (2011). Technology. Port Melbourne, Vic.: Pearson Australia.

Oppenheim, L., Jennings, R., & Watts, A. (2008). Oppenheim's international law. Oxford: Oxford University Press.

Shaw, M. (2003). International law. Cambridge, UK [etc.]: Cambridge University Press.

Von Glahn, G., & Taulbee, J. (2017). Law among nations. New York: Routledge.

Woellner, R. (2005). Australian taxation law 2006. Sydney, N.S.W.: CCH Australia.

Woellner, R. (2013). Australian taxation law 2012. North Ryde [N.S.W.]: CCH Australia.

Woellner, R. (2007). 2007 Australian taxation law. North Ryde, N.S.W.: CCH Australia.

Woellner, R., Barkoczy, S., Murphy, S., Evans, C., & Pinto, D. (2016). Australian Taxation Law 2016. Melbourne, Vic.: Oxford University Press.

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