Aussie Ltd is an Australian subsidiary company of Meranti Ltd. Meranti Ltd manufactures furniture manufactures high quality furniture at a much lower cost and export it to Aussie Ltd. Aussie Ltd has been very successful and enjoyed huge sales volume. This has drastically affected the Australian furniture manufacturers and had threatened the local employment market. In the current income year, the Australian Government imposed a high import duty on the annual sales of all imported furniture by Aussie Ltd that is sold in Australia (assume that this import duty did not previously exist). The import duty that was imposed affected the sales of furniture by Aussie Ltd. Aussie Ltd immediately spent $2 million in advertising campaign in the Australian media to attack the import duty, demanding it to be repealed. The company also sought the Australian public to petition the parliament in this regard, to preserve the freedom of choice so that they could enjoy high quality furniture at low cost. The amount of advertising amounted to eight times of the company’s normal advertising expenditure. Resulting from the drop in furniture sales, Aussie Ltd had to pay a $1 million redundancy payment to 50 of its employees Required: -Discuss the tax implications for Aussie Ltd. -You are required to cite the relevant case law, tax rulings and legislations.