The Agricultural Tax Exemption (ATE) is a measure that allows businesses to be exempt from paying income tax in some cases.
For example, if a company pays a GST and GSTB tax, then they can deduct GST/HST from income.
But some businesses have taken advantage of ATE to avoid paying GST and/or GSTB.
For instance, some Australian wine producers and wine importers may pay a 10% surcharge on their sales of wines produced in Australia.
It’s a common tax avoidance technique and many wine producers have used ATE as an incentive to do so.
There are many reasons why businesses may not pay the full amount of the tax, but the ATE is a major source of revenue for many.
A list of some of the most common deductions businesses use to avoid tax: Businesses may choose to deduct expenses incurred for an overseas operation.
This includes: The costs incurred on a foreign business, such as the cost of a licence to manufacture products in Australia, an acquisition of land or the cost to develop a facility in Australia