Windfall tax

Windfall tax

In the United Kingdom, the Windfall Tax was a tax levied on privatised utility companies.

In Australia, windfall tax may refer to either:
* Commonwealth places windfall tax, imposed under the "Commonwealth Places Windfall Tax (Collection) Act 1998" (1998 No 25) and the "Commonwealth Places Windfall Tax (Imposition) Act 1998" (1998 No 26)
* Franchise fees windfall tax, imposed under the "Franchise Fees Windfall Tax (Collection) Act 1997" (1997 No 132), "Franchise Fees Windfall Tax (Imposition) Act 1997" (1997 No 133), and "Franchise Fees Windfall Tax (Consequential Amendments) Act 1997" (1997 No 134)

In both cases, windfall tax originates in High Court decisions that certain state taxes were unconstitutional. Thus, the States were required to repay to the taxpayers the amounts previously collected under these unconstitutional taxes. The purpose of the windfall taxes were to treat these repayments as income to the taxpayer, and impose a Commonwealth tax upon that income at a rate of 100%. Thus, even though the tax laws in question had been declared unconstitutional, the taxpayers effectively did not receive any repayments; rather, the amounts due back to them from the States were taxed by the Commonwealth. The Commonwealth would then repay these amounts to the States, with the result that the States were not in any financial disadvantage.

ee also

Windfall profits tax


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  • windfall tax — noun A tax levied on windfall profits, profits arising, esp suddenly and unexpectedly, as a result of events not directly connected with the company, etc concerned, such as changes in currency exchange rates • • • Main Entry: ↑wind * * * windfall …   Useful english dictionary

  • windfall tax — ➔ tax1 * * * windfall tax UK US noun [C] TAX ► an extra tax that a government charges a company when it makes a large unexpected profit, especially if they have been helped by economic conditions: »Following record profits, a €5bn windfall tax… …   Financial and business terms

  • windfall tax — windfall .tax n an additional amount of tax that the British government sometimes takes from a company that has suddenly earned a large amount of money that it did not expect to earn …   Dictionary of contemporary English

  • Windfall Tax — A tax levied by governments against certain industries when economic conditions allow those industries to experience above average profits. Windfall taxes are primarily levied on the companies in the targeted industry that have benefited the most …   Investment dictionary

  • windfall tax — UK / US noun [countable] Word forms windfall tax : singular windfall tax plural windfall taxes an extra amount of tax that the government charges a company that makes a lot of money unexpectedly …   English dictionary

  • Windfall Tax (United Kingdom) — The Windfall Tax was a tax on what were claimed to be the excess profits of the privatised utilities [http://archive.treasury.gov.uk/pub/html/budget97/ir1.html] introduced by the Labour government in 1997. It followed from their manifesto… …   Wikipedia

  • windfall tax — An exceptional *taxation charge on *corporations that are deemed by a government to have made *windfall (or excessive) profits owing to unusual circumstances. *Private sector *monopoly suppliers of *public utilities, for example, are subjected to …   Auditor's dictionary

  • Windfall tax — Die Zufallsgewinnsteuer (engl. windfall profits tax) ist eine 1980 in den USA entstandene Steuer, die auf Grund von plötzlichen Mehrgewinnen von Ölfirmen in Zusammenhang mit dem damaligen arabischen Ölembargo entstanden ist. Die Steuer wurde im… …   Deutsch Wikipedia

  • windfall tax — (also windfall profits tax) noun a tax levied on an unexpectedly large profit, especially one regarded to be excessive or unfairly obtained …   English new terms dictionary

  • Windfall profits tax — A windfall profits tax is a higher tax rate on profits that ensue from a sudden windfall gain to a particular company or industry. United StatesIn 1980, the United States enacted the Crude Oil Windfall Profit Tax Act (P.L. 96 223) as part of a… …   Wikipedia

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