Finance & Accounting

Finance Forum Post

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Assessment Type

Forum Post

Word Count

3000 Words

Subject

Finance

Deadline

4 Days

Assignment Criteria

In your POST you are to answer the following questions and must source a minimum of 5 references:

1. What is the Article about?

Mention who the author is. Explain the article/case, the people involved, what happened in the case (specifics of the case), what was the court ruling.

2. What are the key Legal Issues to be considered from the discussion?

Identify the key legal issues. Describe their legal terms and briefly discuss each key issue. Two to four paragraphs for each issue.

3. What would you do to deal with this issue from a Legal Perspective and Why?

How did the court rule in this case? Do you agree with or disagree with the outcome based on legal precedent (from other cases or other laws)?

Please note: Quality not Quantity applies. The important part will be your ability to identify the issue and develop relevant argument in relation to the Issue. Balance the use of theory and your own opinions/ beliefs in your answer.

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Assignment Solution

Article Chosen:

ATO helps uncover illegal tobacco crop worth over $11 million. (2017). ABC News. Retrieved 30 March 2017, from http://www.abc.net.au/news/2017-03-23/ato-illegal-tobacco-crop-worth-over-$11-million-found-at-cooma/8380898

What is the Article About?

On 23rd March 2017, one news was published in the daily newspaper namely ABC South East NSW about the joint raid which was conducted by the Australian Tax Officer & NSW Police and recovered 92,000 tobacco plants. About 2 tons of tobacco leaves, cash about $15,000 and arms and ammunitions (“ATO helps uncover illegal tobacco crop worth over $11 million”, 2017). The raid was conducted by the ATO and NSW Police at Callemondah Road, Shannons Flat in NSW near to the ACT Border at about 9.30 AM on Wednesday upon the information of one civilian of the state (Shatenstein, 2009).

As per the statement of the Assistant Commissioner of Australian Tax Office, the raid team followed the similar procedure as like the raid conducted in the Victoria. On asking as to what to do with such a high quantity of the tobacco leaves, the Assistant Commissioner said that plants and seeds had been destroyed by them. It was also stated by the Assistant Commissioner that the seized tobacco was grown by the accused without obtaining a license from the government and the illicit tobacco is grown in Australia was the responsibility of the Australian Tax Office because it was the offence under the Excise Act. After the raid as per the assessment of the ATO’s the seized tobacco was of the excisable value of more than $11.77 million. The investigation in the case still continues.

What are the key legal issues to be considered from the discussion?

The act of producing tobacco plants, tobacco leaves, and tobacco seeds was forbidden by the Australian Law under the Excise Act (Durrant, 2003).

Excise Act

As per the Section 28 of the Excise Act, any person who does not have the producer license should not produce the tobacco-related materials like the tobacco plants, seeds, and leaves, etc. and if any person does so then, he can be prosecuted for the 2 years of imprisonment and 500 penalty units and also with the 5 times of the amount of duty (Hanauer, 2009).

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