Published on 01 Oct 14
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The wine equalisation tax (WET), introduced by the A New Tax System (Wine Equalisation Tax) Act 1999 (Cth), is, in essence, a wholesale sales tax on certain wine containing a specified content of potable alcohol that is sold for consumption in Australia. The apparent fiscal purpose of the Act is to reduce and recoup the public costs of alcohol abuse. The hallmarks of sound tax legislation are traditionally encapsulated in the tax policy principles of simplicity, equity, economic efficiency and fiscal adequacy.
This article explores the extent to which these hallmarks are reflected in the rules of the Act. The authors conclude that the WET is not a “good tax” in light of any of the principles, and its deficiencies raise the threshold issue of whether alcohol taxation is an appropriate way to address the public costs of alcohol abuse. In the authors’ opinion, there is no valid argument for its retention.
Prof Glenton Barton CTA-Life
Glen is a Professor in the Department of Accounting and Finance in the
Business School of the University of Western Australia. He is a Barrister and
Solicitor of the Supreme Court of Western Australia and former member
in the General and Taxation Division of the Administrative Appeals
Tribunal, Perth Registry and Life Member of the Taxation Institute
of Australia. Current at 01 October 2009
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Prof Dale Pinto CTA-Life
is currently Acting Dean of the Curtin Law School and is a Professor of Taxation Law and Head of the Taxation Department of the Curtin Law School at Curtin University. He is Vice-President of the Divisional Council of CPA Australia (WA Division) and is also a Fellow of CPA Australia, a Fellow of the Australian Academy of Law and is a Chartered Tax Adviser and Life Member of the Tax Institute. Dale is the author/co-author of numerous books, refereed articles and national and international conference papers, and is on the editorial board of a number of peer-reviewed journals as well as being the Editor-in-Chief of several refereed journals. Dale is the Chair of the Tax Institute's National Education Quality Assurance Board and is a member of TEQSA's Expert Panel in Accounting and Taxation. Dale served as an inaugural member of the National Tax Practitioners Board and is a current member of the Board of Taxation's Advisory Panel and the ATO's Tax Technical Panel (Superannuation), as well as the Tax Institute's Technical Committees (Superannuation, Not-for-Profit Organisations and Large Business and International). Current at 05 February 2016
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Annette Morgan CTA
Annette is a lecturer at Curtin University within the Taxation Area who prior to joining Curtin on a full time basis in early 2011 was employed as a Senior Tax Manager in a Perth based accounting firm. Annette has extensive experience in all areas of taxation gained from more than 25 years working within the taxation profession. Annette is a CTA, FCPA and holds a Masters in Taxation. Annette is also the Deputy chair of the Tax Institutes WA Professional Development committee. Current at 17 May 2016
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