In 1705, Emperor Peter I of Russia instituted a beard tax. Those who paid the tax were required to carry a 'beard token'. This was a copper or silver token inscribed with 'the tax has been taken' and 'the beard is a superfluous burden'.
Business activity statement
A business uses a business activity statement (BAS) to report and pay its tax obligations. The format of the BAS is personalised according to the business situation and any options the business has previously selected.
A business can lodge and pay tax electronically, or lodge their tax information by using a form. Businesses must report on time to avoid interest and penalties.
The following taxes are detailed and amounts collected on the BAS:
- GST collected and paid out
- pay as you go (PAYG) instalments – an estimated amount of your tax liability for the year on business and investment income.
- pay as you go (PAYG) withholding – the amount you withhold from payments to employees, contractors and company directors. A business may also have to withhold from payments to other businesses if they do not quote their ABNs.
- other taxes, depending on the nature of the business.
A business that is not registered for GST does not collect GST and cannot claim GST credits, but uses an instalment activity statement to account for the other taxes listed above. An instalment activity statement is also used by individuals who need to report their PAYG instalments.