country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Christopher Fisher Principles Of Australian

tag 0 Download8 Pages / 1,757 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss About The Christopher Fisher Principles Of Australian?

 

Answer:

Introducation

The current situation is based on the determination of the capital gains derived from the sale of capital asset in the form of real estate or shares and they usually make capital gains or losses. The capital gains represent the difference between cost of acquisition of the asset and the amount received from the disposition of the asset[1]. An individual is required to include the capital gains or losses in their assessable income at the time of filing taxable return and pay the tax on the capital gains. Even though it denoted as the capital gains taxation-law but eventually forms the part of the income tax[2]. However, on the event of suffering capital loss an individual taxpayer is not allowed to set-off against other income but the same be used to reduce the capital gains.

As evident from the current situation, it is found that Duncan incurred a capital gain from the sale of town house in Malvern. However, Duncan also reported a capital loss from the town house. As evident capital gains derived from the sale of house can be offset from the capital loss bought forward by Duncan[3].

 


In the following circumstances it is noticed that Duncan held a shares in Westpac Bank. Additionally, the shares were acquired in 18/6/95 and the same were sold in the year 2017 for a sales proceeds of 22,369. According to the Australian taxation office shares in a company or units trust are treated in the identical manner as any other asset for the purpose of the capital gains tax[4]. For an investor, capital gains tax is application on the capital gains that is derived from the shares or unit when the capital gains tax event takes place. Similarly, in the present context it is found shares from Westpac Bank yielded profit however the capital loss bought forward from the sale of BHP shares can be offset against the gains derived from the Westpac.

As defined under section 118-5 of the ITAA 1997 which brings forward that an individual can disregard the capital gains or capital loss that is made from the car, motor vehicle or any similar form of vehicle[5]. A car can be regarded as the capital gains tax asset under division 108. A car might be considered as the collectable in terms of the subsection 108-10 (2) given that the car is regarded an antique.

A car might be considered as the private usage asset under the subsection 108-20 (2) given the asset is used or reserved mostly for their private usage or enjoyment. In either of the situation, the car will be considered for the purpose of the section 118-5 and any form of capital gains or capital loss is not considered under that section[6]. In the present case of Duncan, it is found that ultra-flight aircraft is an asset under section 108-10 (2). However, the loss derived from the sale of will be included the assessable income of Duncan.

Additionally, sale of painting is a Pre-CGT asset and the proceeds derived from the sale of painting cannot be included in the assessable income since it is regarded as the Pre-CGT asset and it is disallowed from being included. The total accounting of indexed capital gains derived from the sales proceeds for Duncan represents 9477.18 and total amount of capital gains tax payable for the year ended stood 591.

Computations of Capital Gains / Loss for Duncan

For the Assessment Year of 2017

Particulars

Amount ($)

Amount ($)

Town House In Malvern

 

 

Sales Considerations

895000

 

Purchase Price

836000

 

Gross Income

59000

 

Less: Capital Loss

25000

 

Long term Capital Gains

 

34000

Shares in Westpac Bank

 

 

Sales Considerations of Shares

22369

 

Less: Index cost of Acquisition (15200 x 123.4/116.2)

16141.82

 

Gross Income

6227.17

 

Less: Capital Loss from sale of BHP Shares

12000

 

Long term Capital Loss

 

-5772.82

Shares In Woolworth

 

 

Sales Considerations

6750

 

Purchase Price

17000

 

Long term Capital Loss

 

-10250

Ultra-Light aircraft

 

 

Sales Considerations

13500

 

Purchase Price

15000

 

Add: Capital Loss from Sale of Caravan

3500

 

Long term Capital Loss

 

-5000

Gross Total Capital Gains

 

33477.18

Less: Capital Gains

 

3500

Indexed Capital Gains

 

9477.18

Tax payable under old regime (marginal tax rate x indexation factor x capital gain)

 

591

 

Assumptions

The current issue is based on the ascertaining the assessable proceeds and tax payable of Christopher for the year ended 2017. As apparent from the existing case study, it is noticed that gross salary derived by Christopher will be taken into the considerations for tax assessment under section 6-5 of the ITAA 1997[7]. As defined under the Taxation Ruling of 97/23 there are circumstances where outlay that is sustained by the taxpayer related to repairs will be accounted as permissible deductions under section 25-10 of the ITAA 1997.

An individual incurring expense on repairs and maintenance of the premises that an individual use to generate income will be considered for allowable deductions as long as the expenditure are not capital in nature. As evident from the current situation of Christopher he incurred an expense of $1000 for repairs for which he can an immediate deduction.

Additionally, Christopher reported an interest on borrowed money to purchase the income producing property. With reference to section 8-1 of the ITAA 1997 an expenditures occurred in gaining or generating the taxable revenue can be considered as allowable deductions[8]. The payment of interest will be considered for allowable deductions since it has been incurred for the purpose of producing income.

As defined under section 25-10 expenditure incurred for repairs of capital nature is not deductible. As held in the case of Hallstroms Pty Ltd v. FC of T (1946) expenditure incurred on replacing or enlarging the profit generating structure instead of working or operating expenditure then such expenses are not allowed as for deductions.[9] It was noticed that the taxpayer had incurred an expenditure of $11,000 on replacing tin roof on rental property with tiled roof represents a capital expenditure and a deduction for the same cannot be claimed.

 


As stated by the Australian Taxation Office claims relating to medical expenditure offset is restricted the net eligible expenditure incurred. The total medical expenditure that is incurred by the taxpayer will be subtracted from the refunds that is received from Medicare. Therefore, in the present situation it is found that Mary incurred a medical expense and the same can be claimed for deductions by subtracting the refund of the medical expenses.

Subsection 51 (1) of the ITAA 1936 defines that a deduction can be claimed for work related expenditure up to the extent of gaining taxable income. As held in the case of Ronpibon Tin NL v. FC of T (1949) For an expense to meet the test of deductibility there should be connection among the expenditure and taxable earnings so that the expenses incurred is subsidiary and relevant in gaining taxable income. As evident in the current situation, it is found that Christopher incurred an expenditure on calculator and expenses incurred on Ipad will be allowed as allowable deductions.  

The taxation ruling of TR 93/30 provides a comprehensive explanation of the treatment for home office expenditure[10]. Cost that is associated with the employee home are generally considered as the private expenditure or having a domestic nature. As held in the case of Thomas v. FC of T (1972-73) a deduction will be considered as allowable up to the proportion of the expenditure that is associated with the employee home[11]. Similarly, in the current instance it is noticed that Christopher incurred home office expenditure and an allowable deduction for the same can be claimed since it was incurred for the purpose of income producing activities.

From the current situation of Christopher, it is found that he derived a rental income of $18,250 and according to the definition of section 6-5 of the ITAA 1997 rental income gained by the taxpayer will be taken into the considerations in the taxable earnings of the taxpayer. For that reason, the rental income derived by Christopher will be incorporated in the taxable income and the same will be assessable.

 


An Australia resident for taxation purpose will be considered for taxation purpose for their worldwide income and hence they are required to declare such income in their taxable return[12]. The foreign income comprises of the overseas investment income in the form of dividends and such income will be considered for taxation purpose in the sourced country however it will be potentially subjected to double taxation. In order to overcome the circumstances of double taxation and exemptions can be claimed by the taxpayer. Similarly, Christopher can claim a foreign income tax offset relating to bank interest derived from the New Zealand.   

Computation of Taxable Income of Christopher

For the year ended 2017

Particulars

Amount ($)

Amount ($)

Assessable Income

 

 

Gross Salary

95141

 

Less: PayG

22750

 

Net Salary Received

 

72391

Australian sourced Rental Income

 

 

Rent Received

 

18250

Australian Sourced Interest Income

 

 

Bank Interest from ING Bank

4581

 

Bank Interest from BNZ Bank

469

5050

Australian Sourced Dividend Income

 

 

Fully Franked (Net)

2723.04

 

Gross up for Franking Credits

1058.96

3782

Income from private consulting

 

5935

Total Assessable Income

 

105408

Allowable Deductions

 

 

Interest on borrowings of property

 

18000

Rental Property Repairs

 

3000

Medical Expenses for Christopher and his wife

7500

 

Less: Refund of medical expense

2000

5500

Maintaining Helen Mother Expense

 

5200

Donation to Salvation Army

 

100

Purchase of Sun hat

 

45

Purchase of calculator for work purpose

 

285

Purchase of Ipad (80% work related)

 

740

Home Office Expenses

 

1468

Total Allowable Deductions

 

34338

Total Taxable Income

 

71070

Tax on Taxable Income

 

14644.75

Add: Medicare Levy

 

1421.4

Less: Franking Credits

 

1058.96

Less: Withholding of tax from New Zealand

 

46

Total Tax Payable

 

14961.19

 

Reference List:

Barkoczy, Stephen et al, Foundations Student Tax Pack 3 2016 (Oxford University Press Australia & New Zealand, 2016)

Coleman, Cynthia and Kerrie Sadiq, Principles Of Taxation Law 2013

Harris, Jason et al, Theory And Law In The Regulation Of Business

Kenny, Paul, Michael Blissenden and Sylvia Villios, Australian Tax 2017

Kenny, Paul, Australian Tax 2013 (LexisNexis Butterworths, 2013)

Keyzer, Patrick, Christopher Goff and Asaf Fisher, Principles Of Australian Constitutional Law(LexisNexis Butterworths)

Krever, Richard E, Australian Taxation Law Cases 2013 (Thomson Reuters, 2013)

Mangioni, Vince, Land Tax In Australia

Morgan, Annette, Colleen Mortimer and Dale Pinto, A Practical Introduction To Australian Taxation Law (CCH Australia, 2013)

Nethercott, Les, Ken Devos and Livia Gonzaga, Australian Taxation Study Manual

Sadiq, Kerrie, Principles Of Taxation Law 2016 (Law Book Co of Australasia, 2016)

Woellner, R. H, Australian Taxation Law 2012 (CCH Australia, 2013)

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Christopher Fisher Principles Of Australian. Retrieved from https://myassignmenthelp.com/free-samples/christopher-fisher-principles-of-australian.

"Christopher Fisher Principles Of Australian." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/christopher-fisher-principles-of-australian.

My Assignment Help (2019) Christopher Fisher Principles Of Australian [Online]. Available from: https://myassignmenthelp.com/free-samples/christopher-fisher-principles-of-australian
[Accessed 12 July 2020].

My Assignment Help. 'Christopher Fisher Principles Of Australian' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/christopher-fisher-principles-of-australian> accessed 12 July 2020.

My Assignment Help. Christopher Fisher Principles Of Australian [Internet]. My Assignment Help. 2019 [cited 12 July 2020]. Available from: https://myassignmenthelp.com/free-samples/christopher-fisher-principles-of-australian.


With time, MyAssignmenthelp.com has become one of the best college essay writing services. Our all rounded services give students the confidence to overcome assignment related issues. Our services are fast enough to meet most urgent deadlines. We are capable of delivering fast essay writing services with the help of our specially designed provisions and writers' teams. Our urgent essay help services guarantee most rapid delivery of assignment solutions. Some of our most popular essay services are application essay help, exploratory essay help, literary review essay help and argumentative essay help.

Latest Tax Samples

HI6028 Taxation Theory Practice And Law 13

Download : 0 | Pages : 7
  • Course Code: HI6028
  • University: Holmes Institute
  • Country: Australia

Answers: 1. With reference to the principles of taxation, it is seen that it plays an important role in accomplishing the income equality within the society. Some of the important functions are given below- Taxation redistribution function In order to allocate proper understanding of the Australian taxation system, there are many deductions, fringe benefit tax, goods and service tax. The allocation function reveals comes up to make governme...

Read More arrow Tags: Australia Haberfield 33 Taxation theory practice and law Holmes Institute 

HI5020 Corporate Accounting 3

Download : 0 | Pages : 12

Answer: Introduction The focus of the assessment is to formulate a detailed analysis on the reporting process of a business mainly focusing on reporting for taxes. The company which is selected for the analysis is CSL ltd which is engaged in providing pharmaceutical solutions to the people. The company is known for its 9innovative approaches for development of new medicines (Csl.com. 2020).. The annual report for the company would be consider...

Read More arrow Tags: Australia Brisbane 33 corporate accounting Holmes Institute 

HI6028 Taxation Theory Practice And Law 12

Download : 0 | Pages : 9
  • Course Code: HI6028
  • University: Holmes Institute
  • Country: Australia

Answers: 1:  Issues: The central matter of discussion that is addressed in this case is concerning the tax deduction of prepaid rent that is paid by the taxpayer for 10 years of casino rental. Rule: An outgoing is not permitted for deduction till the extent that the outgoing has occurred for expenses that are capital and not allowable as tax deduction inside the “sec 8-1 ITAA 1997”. There must be a difference between the r...

Read More arrow Tags: Australia Wollongong 33 Taxation theory  practice & law Holmes Institute 

ACC5TAX Taxation

Download : 0 | Pages : 9
  • Course Code: ACC5TAX
  • University: La Trobe University
  • Country: Australia

Answers: 1:  Issues Reasons/Discussion Amount ($) Issue 1: Salary and Allowance Under the “sec 6 (1) ITAA 1936” the income that is received by an individual taxpayer out of their individual effort are known as personal exertion income. The judgement that was made in “Dean & Anor v FCT (1997)” stated that the remuneration paid to employee for being employed in the compa...

Read More arrow Tags: Australia 33 Australia Taxation Law La Trobe University 

BULAW5916 Taxation Law And Practice 3

Download : 0 | Pages : 9
  • Course Code: BULAW5916
  • University: Federation University
  • Country: Australia

Answers: 1:  Part 1:  There are situations where the taxpayers normally gets the compensation payment where they suffer commercial as well as other type of losses. There are golden rule or principles relating to replacement. The character of a compensation receipt is largely dependent on the type of amount that is received by the taxpayer. This involves the payment which replaces, substitutes or compensate the taxpayer (Barkoczy, 2...

Read More arrow Tags: Australia Sydney 33 Taxation Law and practice Federation University 
Next
watch

Save Time & improve Grade

Just share Requriment and get customize Solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,360,163

Orders

4.9/5

Overall Rating

5,081

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1692 Order Completed

98% Response Time

Alfred Dodd

PhD in Computer and Information Science with specialization in Database

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

248 Order Completed

100% Response Time

Lloyd Bernabe

MSc in Accounting

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

134 Order Completed

95% Response Time

Thomas Nelson

MS in Information Systems Technology with Specialization in Database Administration

New Jersey, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

285 Order Completed

99% Response Time

Eugene Baranowski

MBA in Supply Chain

London, United Kingdom

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

good it was perfect clear answer just what i need for ode thank you so much!! clear and in steps

flag

User Id: 304633 - 12 Jul 2020

Australia

student rating student rating student rating student rating student rating

The current help needs to improve on his English writing. While the coach was helpful in providing the content, I had to rework the context of whole paper to make it readable for the level of output expected. But overall it was helpful since I don't ...

flag

User Id: 223122 - 12 Jul 2020

Australia

student rating student rating student rating student rating student rating

Work is perfectly written, though not graded yet but I’m being optimistic that a good grade will be awarded.

flag

User Id: 369420 - 12 Jul 2020

Australia

student rating student rating student rating student rating student rating

It was well written and I\'m 100% satisfied. The expert knew exactly what to do and finished well above my expectations.

flag

User Id: 332269 - 12 Jul 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?