Co As in the UK, a limited company is a separate taxable entity from its shareholders. There is thus a downward trend in the rate of tax applicable to the profit of companies in Australia, in common with the trend found in most of the developed world. The sum withheld can only be claimed as a credit on the tax return at the end of the year - clearly a significant tax cash flow disadvantage and a drain on valuable working capital. There has been much debate about whether the introduction of GST has lead to a leap in inflation - the perception thus far is that it has been broadly neutral.
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