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Question
A local school has a surplus of calculators that they purchased a year ago from Gold Coast Stationery Supplies Pty Ltd. As Gold Coast Stationery Supplies Pty Ltd is unable to accept the return of their products unless they are faulty, they agree to purchase the calculators back from the school at a heavily discounted price. The calculators have been used for only a few days and have spent most of the last year sitting in a cupboard at the school. The calculators are fully functional although some are heavily scratched. Gold Coast Stationery Supplies Pty Ltd place a half-page advertisement in the Gold Coast Bulletin advertising these calculators as new. They offer the calculators to the public at a 50 percent discount. They also state in the advertisement that 'you will know by purchasing these calculators that you will be supporting Australian businesses because they are made in Australia and consist of Australian components. These products are fully endorsed by the Queensland Education Department'. The calculator cases are made in Australia and the components are assembled in Australia however, the internal parts along with the screens are manufactured in Thailand. Furthermore, the Queensland Education Department has a policy of not endorsing any product.
Advise Gold Coast Stationery Supplies Pty Ltd as to their liability for breach of the Australian Consumer Law 2010 (Cth)
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Advise what tax consequences arise in respect of the payments.
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