Part M - The treatment of taxes that share characteristics with taxes on property (ETF 1111, TC 3)

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Australian System of Government Finance Statistics: Concepts, Sources and Methods
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Reference period
2015

13.143.

Paragraph 5.54 of the IMF GFSM 2014 states that while sharing certain characteristics with taxes on property (ETF 1111, TC 3), certain taxes should be classified elsewhere. Box 13.7 below gives guidance on where these taxes should be classified:

Box 13.7 - Taxes that share characteristics with taxes on property (ETF 1111, TC 3) but should be classified elsewhere

  • Taxes on immovable property that are levied on the basis of a presumed net income should be recorded as taxation revenue under the appropriate category within taxes on income, profits, and capital gains (ETF 1111, TC 1).
  • Taxes on the use of property for residence, where the tax is payable by either proprietor or tenant and the amount payable is a function of the user’s personal circumstances (such as net income or the number of dependents), should be recorded as taxation revenue under the appropriate category within taxes on income, profits, and capital gains (ETF 1111, TC 1).
  • Taxes on construction, enlargement, or alteration of all buildings, or those whose value or use density exceeds a certain threshold, should be recorded in taxation revenue as other taxes on the use of goods and performance of activities not elsewhere classified (ETF 1111, TC 539).
  • Taxes on use of one’s own property for special trading purposes (such as selling alcohol, tobacco or meat), should be recorded in taxation revenue as other taxes on the use of goods and performance of activities not elsewhere classified (ETF 1111, TC 539).
  • Taxes on exploitation of natural resources such as land and subsoil assets not owned by government units (including taxes on extraction and exploitation of minerals and other resources), should be recorded in goods and services tax (GST) (ETF 1111, TC 412). Payments to a government unit as the owner of land and subsoil assets for the exploitation of such natural resources (often referred to as royalties), should be recorded in land rent income (ETF 1134) or royalty income (ETF 1135). Payments for licences that allow the beneficiary to carry out the business of exploitation of land and subsoil assets are classified in other taxes on use of goods and performance of activities not elsewhere classified (ETF 1111, TC 539).
  • Taxes on capital gains resulting from the sale of property are recorded as capital gains tax on individuals (ETF 1111, TC 114, SDC) or capital gains taxes on enterprises (ETF 1111, TC 123, SDC).

Source: Based on paragraph 5.54, International Monetary Fund Government Finance Statistics Manual, 2014.