Challenge quiz: Business tax

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Challenge quiz rules

Each team chooses a topic and then chooses a question.
Each team must start by answering one 100-point question correctly before moving to the higher point questions.
If a team answers the question correctly, they score the allocated points.
If a team answers the question incorrectly, the next team gets a chance to answer the same question.
A team has one minute to answer the question. The team can use that time to consult and agree on a response before the nominated member provides the answer.
A team must have a total score of 600 before they can attempt to answer a 500-point question.
Your teacher may apply penalties for students who call out answers or interfere with other groups.

Note: The topics 4 and 5 of the module, Explaining business taxes and The goods and services tax (GST), are covered in part 4 of the Challenge quiz under the combined topic of Business tax.

The quiz can be played by asking the following questions or by playing the Business challenge quiz online.

Points	1 What is a business?
100	What is a business?
200	How does a hobby differ from a business?
300	What is an Australian business number (ABN)?
400	List three sections that should be included in a business plan.
500	What might happen if a business does not have an ABN?

Points	2 Business structures
100	What is a sole trader?
200	How are the profits made by a partnership shared?
300	What is meant by the term 'limited liability' in relation to companies?
400	How is income tax levied on the profit made by a sole trader?
500	What is an essential difference in ownership structure between a sole trader business and a company?

Points	3 Running a business: tax obligations
100	What is PAYG withholding?
200	What factors are taken into account when deciding the amount of tax to withhold? (PAYG withholding)
300	What is the minimum rate that employers must contribute in superannuation for their eligible employees?
400	Identify three pieces of information that will be included on a payment summary.
500	List two things a business must do when it ceases trading or has been sold.

Points	4 Explaining business taxes
100	At what rate is GST charged in Australia?
200	Name three items that attract excise duty.
300	List two features of company tax.
400	Above what level of sales revenue must a business register for GST?
500	Can a company claim the 50% discount on the capital gains tax paid on the profit from the sale of a CGT asset?

Points	5 How is business tax collected?
100	What is a business activity statement?
200	Name two taxes a business will report on an activity statement.
300	Under taxation law, how long must a business generally keep its records?
400	Outline four records that a business may need to keep.
500	List three things a business document must include for it to be acceptable as evidence for tax purposes.

Fact 8

In 1910, the Commonwealth Government introduced a land tax to provide for more defence spending and to prepare for the increase in migration. The land tax was chosen to encourage large-scale land owners to subdivide their land and sell it to small-scale settlers.

Excise

A tax on certain goods produced or manufactured in Australia. These goods include alcohol, tobacco and petroleum. Customs duty at an equivalent rate is levied on imported goods to ensure that these goods are treated consistently with local goods.

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