Income and capital gains taxes levied on enterprises (TC 12)

A1A.371.

Income and capital gains taxes levied on enterprises (TC 12) consists of taxes levied on the net profits and capital gains made by resident trading and financial enterprises. This category is further classified into:

• company income tax (TC 121);
• income tax paid by superannuation funds (TC 122);
• capital gains taxes on enterprises (TC 123);
• prescribed payments by enterprises (TC 124);
• income and capital gains taxes levied on enterprises not elsewhere classified (TC 129).

Excludes: Taxes assessed on gross sales or turnover.

A1A.372.

Company income tax (TC 121) consists of taxes levied on the net income or profits (that is, gross income minus allowable tax deductions) of trading and financial enterprises.

Includes: Mineral Resource Rent Tax; Petroleum Resource Rent Tax.

A1A.373.

Income tax paid by superannuation funds (TC 122) consists of taxes levied on the profits made by superannuation funds. The tax varies according to the portfolio mix chosen by the fund. Superannuation funds investing in government securities are subject to lower tax assessment and may be exempt under certain circumstances.

A1A.374.

Capital gains taxes on enterprises (TC 123) consists of taxes levied on capital gains which form part of the taxable income of trading and financial enterprises. They are usually payable on nominal, rather than real, capital gains and on realised, rather than unrealised, capital gains.

A1A.375.

Prescribed payments by enterprises (TC 124) consists of taxes collected from enterprises by the Commonwealth under the Prescribed Payments System (PPS). The PPS was an income tax collection system that applied to certain industries. Under the PPS, employers were obliged to deduct specific amounts of tax from payments made to sub-contractors. The PPS was incorporated into the Pay-as-you-go taxation system which was introduced in July 2000.

A1A.376.

Income and capital gains taxes levied on enterprises not elsewhere classified (TC 129) consists of income and capital gains taxes levied on enterprises that cannot be classified to company income tax (TC 121), income tax paid by superannuation funds (TC 122), capital gains taxes on enterprises (TC 123) or prescribed payments by enterprises (TC 124).