GROWING GST WOES

by Jeremy Lee
As the Australian Tax Office - now beset with its biggest-ever internal scandal - pushes towards GST 'D-Day", the coming injustices float to the surface like dead fish in a polluted river. Since fraud charges have been laid against a former high-ranking ATO official, Nick Petroulias, it appears that other officers have been issuing 'private rulings' to taxpayers, on which assessments have been based. In other words, such officials have made judgements interpreting the virtually impossible-to-understand Taxation Act, and put the stamp-of-approval on subsequent tax returns. It has mostly been large corporations with access to this "green-light" service; Mr. Average Australia has had to go through the usual format with the likelihood of tax-audit at some time.

The Australian Financial Review (29/3/2000) said of the charge revelations: " ... Tax experts said the system was inherently flawed and the Federal Opposition called for a major independent review of the ATO practice of issuing private rulings to taxpayers on its interpretation of the tax law ..... As the backlash intensified, it emerged that other tax officers, including high-ranking officers, signed off on similar rulings to those issued by Petroulias over many years ...."

With its reputation in tatters, and its attention diverted to dealing with the massive ramifications of the Petroulias affair, the ATO is hardly in a position to remedy the massive backlog of administration required for the coming GST.

DEAD FISH RISING

Under the heading "GST 'KNOWLEDGE GAP' IS RISING" The Australian (27/3/2000) reported: "Anyone making crucial GST decisions based on advice from their accountant could be making a big mistake. "But it's not just accountants who are at risk. Other advisers are under pressure because of a GST knowledge gap. "Numerous accountants surveyed by The Australian admitted they were unable to give clients answers because the tax office had not given clear guidelines. "Experts warn that many advisers are exposed to legal action and potential big losses for giving wrong advice. Chartered accountant firm Panel Kerr Forster is alerting everyone from lawyers to accountants to real estate agents that they are terribly exposed if they fail to advise their clients properly on the GST.
'Advisers who neglect to do appropriate due diligence and give correct advice could find themselves subject to expensive and time-consuming litigation' .... GST specialist Bruce Thomas with accounting firm William Buck says there are still countless areas where giving the right advice is impossible because the tax office is giving conflicting rulings. He cited the case of deposits. 'On page 28 of the ATO's Travel and Tourism booklet the example provided is at odds with what the tax office has been telling tourism operators in their seminars.' "' In this example, someone putting a deposit down for some rooms at a motel paid $550 but GST was not to be paid until the settling of the final account. Now we're being told the GST is due on the full amount when the deposit is initially made,' Mr Thomas said. ....'It's impossible to plan and advise for the GST if you don't have the answers in black and white,' he said .... 'I hardly have time to keep up with the tax office publications, but I have to. However, the suburban accountant has got Buckley's.' ...."

If this is what Mr. Costello means by "making the tax-system simpler", then Heaven help us!

In another Australian article (27/3) Robert Gottliebsen pointed out that there will be a substantial fall in the number of taxis operating after June 30th, with surveys showing the number of drivers will fall by 20 to 25 percent. Taxis have been excluded from the "below $50,000" exemption on ABN numbers.

TRAVEL INDUSTRY DISASTER

We have received the following personal story from Phillip Butler - well known to us as Eric's son - another example of the vicious effects of the GST.

"The Howard Government has always stated it was the 'friend' of small Australian businesses. You don't have to be a mathematical genius to realise that John Howard and Peter Costello march to the tune of the globalist economy. " My wife and I operate an independent travel agency - just fortunate that we are involved in the 'group and special interest' areas of the industry - a 'niche' market. However, it is becoming quite obvious to anyone in this industry that ultimately it will be the independents who will be squeezed out.
The industry publication Travel Week Australia (15/3/00) shows clearly how one sector - mainly family-operated companies - will be slaughtered by the GST. ('Sydney-based MAUS Business Systems has warned the travel industry that bankruptcies could soar in the wake of the GST.') " They stated that when the GST was introduced into New Zealand (New Zealand Ministry of Commerce figures) business bankruptcies doubled in four years. Canadian business bankruptcies increased by 46.5% in the four years post-GST.
I can certainly appreciate that.

Our family business, as our accountant states, is currently simple regarding paper-work:
(1) We receipt all in-coming monies - using one of those blue generic receipt-books.
(2) Funds are placed into our Trust Account - which is audited to the satisfaction of the Travel Compensation Fund, the Australian Securities Commission and, of course, the Australian Taxation folk.
(3) We pay out of our Trust Fund all necessary payments to our travel suppliers.
(4) Any profit - i.e. commissions earned - are then passed on to our holding company, out of which we pay salaries, printing, computer services, etc.

As my accountant says, 'Very simple accounting required.' In other words, our receipt book and our cheque book do the required accounting.

"Under the new regime we will have to:
(1) Claim back GST on services and products never taxed before, and file a tax return every three months.
(2) Have to hire a person to do the accounting - which also means placing a new accounting programme on our computers. The Federal Government, magnanimously, is giving us back $200 out of our taxes, to be claimed off our costs. The programme will cost $375, and the programmer to install it $25 an hour with the same amount for further service costs; plus all the other employee costs - 6% superannuation, Workers' Compensation etc. And it goes on from there!

Denmark commenced with a VAT (GST) of 10% - now 25%. Canada commenced with a Capital Gains Tax of 0.1% in the 70s - now 10%! "Certainly - businesses can hold onto the GST they collect for 3 months; however, it will be Big Business which reaps the reward because of its massive turnover, while small businesses will have the problems. "Little stores - such as milk-bars, fish-and-chip shops - and small specialist stores are going to have to comply with the regulations. Unless they have a bar-code reader-machine - at least $10,000 per pop - they will have no hope of complying with GST, regardless of 'cooked chook' or fresh chook.

Small business will be the lamb led to the slaughter. But the biggest slaughter will come when the next Federal election is held. Like Canada, it is a 'conservative' party pushing this hated tax through. The Canadian party which had a majority of over 100 seats was left with two in the Canadian House of Commons. Even the Prime Minister of the day lost her seat. Two elections later they have hardly improved.

Sadly, One Nation's self destruction, following that party's destruction of Graham Campbell's base in Kalgoorlie, suggests that Coalition madness will ensure a Labor Government for years to come. Labor is no more friendly to small business, and won't abolish the GST. Like the Liberals and Nationals, Labor is a creature of globalism. The GST is an international requirement, promulgated by the IMF. According to Howard and Costello it is going to be 'good' for us all.

Make the protest against the GST the biggest thing in Australia yet!

ANOTHER PITIFUL EXAMPLE

A letter-writer in The Courier-Mail Queensland (30/3/2000) gave another example of the idiocy: "It is evident that the system of withholding tax is unworkable even for the Australian Tax Office. "By introducing two numbers, as opposed to the rest of the world which generally has one, the variations when making a simple purchase have risen to three. You could purchase from someone who is not registered at all; you could purchase from someone who has an Australian Business Number but is not registered for GST; you could purchase from someone who has an ABN and is registered for GST. Imagine buying flowers for the office from a roadside flower seller for $60. 'Are you registered? Do you have an ABN number? Are you registered for GST? If so, please can I have a tax invoice? If not, I'll have to keep $29.10 (48.5 percent withholding tax) and you can get it back in 18 months when you are assessed.' This is taxation gone mad.

Most small businesses in such situations would not survive the year. They would be taxed at an upfront rate on revenue of 48.5 percent when, in reality, they would pay only 22.76 percent (the average rate on taxable income of $50,000). There would be a considerable difference between their revenue and their taxable income and the cashflow impact would put them out of business. The business that buys the flowers would have to record the name and address of the flower seller and pay the $29,10 over to the ATO. Remember, every transaction falls into the net, including all petty cash payments. Businesses make many such purchases ....

The only logical conclusion is that the end of small business (and particularly Australian-owned) is the whole idea!

What is required is a docile, servile population, totally in the hands of the corporate world, and dutifully policing one another under the controlling eye of the Government and the Australian Tax Office. If you haven't grasped that, and still put the whole thing down to bumbling foolishness, you are on a steep learning curve!

THOSE IN THE KNOW

KEATING AND HIS ILK JUST DON'T UNDERSTAND

The Canberra Times, 30/3/2000, tells us that Paul Keating predicts the future demise of the Monarchy in Australia citing the belief that, "Basically, monarchs are a bygone age. I think to live in a country where the head of state is born to rule the rest of us would just diminish all of the citizens." What gall from such a centralist, power-hungry ideologist. What does diminish our rights to live as a free people is the way cringing, wheeler-dealer politicians, have kow-towed to the international banking elite and have subjected us, more and more, to their control through their power of mammon (money).

Keating is one of the present 'elite' who rail against the idea that the Queen does not have to bow to the party line and cannot be manipulated by the backroom wheelers and dealers.

As Queen Elizabeth said to the Australian people in her first official speech on this present visit: "I respect and accept the outcome of the referendum. In the light of the result last November, I shall continue faithfully to serve as Queen of Australia under the Constitution to the very best of my ability, as I have tried to do for these past 48 years. It is my duty to seek to remain true to the interests of Australia and all Australians."
God Save the Queen!

Let us be quite sure as to where and to whom the loyalty of the present elite in this country is directed - and it is not to Australia and the Australian people. To get a clearer picture of the contempt that these people have towards Australians and Australian culture you need to read the book, "The Republic of the Rich" available from League book services in your State.

PM CALLS ON PEOPLE TO 'DOB IN A DOLE CHEAT'

It has been reported that Mr. Howard has called on people to abandon their "Australian unwillingness to dob in dole cheats", but he was at great pains not to include the stay-at-home parents who receive parenting payments - Sydney Morning Herald, 25/3. Mr. Howard commits the 'sin' of 'swallowing the gnat', condemning the petty pilfering of the social security system but ignores the most stupendous steal in all history and the banks' monopoly of the public credit. Aaaarg! What humbug!

What about the fact that the banks create financial credit against the real credit created by Australian communities. What about the fact that he and his government are perpetrating the 'greater sin' by never challenging the banks' monopoly of the nation's money supply. Has it never occurred to him that the basic immorality is in the fact that practically all money begins its life as a debt to the banks, and it is upon this fact that most 'lesser sins' are based - including the 'sin' of 'dole bludging'?

Under the present pro-Marxist policy of progressive taxation, the population is grouped into classes - those struggling for gain or those trying to limit their losses. The culmination will be some sort of tyranny, whether described as 'socialist' or 'capitalist'. If there were no alternative to taxation as a means of financing the nation's affairs, then it would be a case of grin and bear it, but there is an alternative.
It is the sovereign right of a nation that mints and prints its own currency, to create its own credit resources, instead of governments following the treasonable practice of pawning and selling off the nation's assets to the banks and the international monopolies. What the banks can do for themselves, the Reserve Bank could do for Australia and all Australians.

WHAT SHOULD WE RENDER TO CAESAR?

by Betty Luks
Not only have the Christian concepts of freedom, rights and responsibilities been so undermined, perverted and lost but also the organised Church is now in danger of being absorbed and/or destroyed by subordinating herself to Caesar. She is in danger of losing those hard-fought-for freedoms guaranteed to her in Magna Carta. Any study of ancient history will show that the Church and State were one. When it came to religion, morality and politics there was only one Legislator and Authority. When Christ delivered the precept "Render unto Caesar that which belongs to Caesar and to God that which belongs to God", He not only set bounds to Caesar but forged the instrument charged with the responsibility of insisting on those bounds - the Church.

The attack upon charities, education and other non-profit organisations through the GST and Entity taxation is another encroachment of Caesar into a domain that does not belong to him. The Sydney Morning Herald's economics' correspondent (25/3) reported the concern of Tax officials that so few of the charitable organisations have registered with the Tax Office. We are now told that: "Whether they fall in the GST net or not, all non-profit organisations have to register with the Tax Office to confirm their status as exempt from income tax and legal recipients of tax-deductible gifts and donations".

A little-known part of the new tax legislation requires non-profit organisations - ranging through big charities, Bible classes, surf-lifesaving clubs, schools and child-care centres - to apply for an ABN (Australian Business Number) and then go through an endorsement process to ratify their tax exempt status.
On what basis and on whose authority does Caesar determine who is tax exempt and who is not?

Sadly, the organised Church has failed to recognise what is happening, or she lacks the necessary leadership, or she lacks the moral courage to speak out. It was once understood a tax was a bargain between the ruler and the taxpayers. The right of trial by jury instead of by combat is but one example. An agreed rate was struck for a specific purpose. The purpose of the tax was determined, the amount was bargained for and upon agreement, consent was given. The contrast could hardly be more marked than in the proposed taxation reforms of this present government - of which the GST is a part.
Isn't it time the help and support of the Churches was enlisted in the anti-GST campaign?

Further reading: "Social Credit and the Christian Philosophy" by E.D. Butler.

SALVATION ARMY - ANOTHER ARM OF GOVERNMENT?

BASIC FUND

SYDNEY CONSERVATIVE SPEAKERS' CLUB

SOUTH AUSTRALIA: ACTION-TRAINING MEETINGS

VICTORIA: THE MATT SINCLAIR CAMPAIGN

This campaign initiated by three pensioners came out of Matt Sinclair's letter to the editor. They have no resources other than a few, but very welcome donations received by those concerned about the GST. They are now servicing 5,000 people who are collecting signatures as fast as possible. While this would appear to be a large number of signatures, they emphasise it is not enough to move government. This phase of the campaign - the petition - must be increased and sustained. There is a 'sifting process' going on to identify those who are committed to taking the matter and action further.
Petition forms available from the following addresses - don't forget a self-addressed stamped-envelope to help with costs. Mr. Ken Grundy, PMB 21, Naracoorte, SA, 5271.

Matt Sinclair Campaign, P.O. Box 184, The Basin, Vic, 3154
Senator Len Harris, Senate Office, Parliament House, Canberra. Phone: (02) 6277 3410; Fax: (02) 6277 5705.

The Hotel groups have awoken to the fact that they have been duped by this Government. Make approaches to them to have the petitions on the bars for patrons to sign. Petitions must be completed and returned by April 30th.

LONG-LIFE ANTI-GST BUMPER STICKERS

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