Exports made on payment of tax
Exports made without payment of tax
Where tax on inputs are higher than tax on outputs
All of the above
Answer is Wrong!
Answer is Right!
The correct answer is: D. All of the above
Explanation:
Refunds will not be allowed in cases of:
- Exports made on payment of tax: This is because the exporter has already paid the tax on the goods that they are exporting. Therefore, they cannot claim a refund of the tax that they have already paid.
- Exports made without payment of tax: This is because the exporter has not paid the tax on the goods that they are exporting. Therefore, they cannot claim a refund of the tax that they have not paid.
- Where tax on inputs are higher than tax on outputs: This is because the exporter has incurred more tax on the inputs that they used to produce the goods that they are exporting than the tax that they will collect on the outputs that they sell. Therefore, they cannot claim a refund of the difference between the two taxes.
In all of these cases, the exporter would be receiving a windfall profit if they were allowed to claim a refund of the tax. This would be unfair to other businesses that are not exporting goods, and it would also be unfair to the government, which would be losing revenue.