Tax

AssessableDetermining the income and expenses that are assessable income or allowable deductions Assessable Particulars Legislation, Case law, Rulings, Reasoning Item – 2020 Tax Return No Wedding Gift A gain that is classified as a normal gift cannot be classified as earnings. In “Hayes v FCT (1956)” the bookkeeper got shares in company that was given to h...

Determining Capital Gains or Losses under Section 108-20 of ITAA 1997Issue:  This issue deals with the determination of capital gains or losses derived from the sale of assets defined under section 108-20 of the ITAA 1997. “Section 108-20 of the ITAA 1997” “Section 108-10 of ITAA 1997” Under “section 108-20 of the ITAA 1997”, loss of $1,000 incurred for the sale of home sound system cann...

TR 1999/6 - Taxation Ruling on Rewards Received by Frequent Fliers1. 1) As per the TR 1999/6 taxation ruling if any points or rewards received by any regular fliers from the airline organization, the amount will be included under the assessable income of the receiver. Further, the TR 1999/6 taxation ruling deals with the points or rewards received from the flight that is offered to the loyal customers.  However, the rewards will be dealt ...

Calculation of Taxable Income for Jane BrownInformation as regards Jane Brown is hereby provided in this study. In case, the main objective is to enumerate the net payable amount of tax or else amount refundable during a particular period of time. In this case, the tax is enumerated by applying different provisions of the pertinent law. The particular section 4.1 of the Income Tax Assessment Act, every individual, corporation as well as other...

Introduction to the case studyIssue: This is a case of an employee named as Alan who used to work with a company named as ABC Pty Ltd. This case study would help us to know about the provisions relating to fringe benefit tax in Australia. There are various benefits which are given to Alan by the company on which fringe benefit tax needs to be charged. Apart from this if any transaction includes GST then input tax credit is also available in th...

Income Tax Payable of Mr. Rich1. A. Statement showing Income Tax Payable of Mr. Rich Particulars Amount Amount Business Income  $ 584,000.00 Interest Income  $   50,000.00 Dividend on Universal corporation  $  10,000.00 Gross up amount  $    1,700.00 Total Dividend from UC ...

IssueIssue The main issue in the given case is to determine whether Kit is an Australian tax resident for the given income year and to comment on the relevant tax treatment on the received income during the tax year. Rule In order to compute the tax treatment on the derived income of an individual, it is essential to determine the tax residency status of that concerned individual. It is because, if the individual is Australian tax resident ...

Answer to Question 1“Section 4-15 of the Income Tax Assessment Act 1997” states that in order to calculate taxable income, the allowable expenses are deducted from assessable income. In addition, a taxpayer is allowed in claiming deduction under “Section 8-1(1) of the ITAA 1997” for expenditures incurred on gaining or developing assessable income along with conducting the activities associated with the businesses...

Question 1 (Hilary- Income From Personal Exertion)Hilary is a well-known mountain climber and she has been offered by Daily Terror newspaper an amount of $ 10,000 for writing a life story. She writes a story without taking assistance from a ghost writer and assigns all her rights, interest and title to Daily Terror in the copyright for $ 10,000. She had never written any story before this. She also had send a manuscript to Mitchell Library $ 5,0...

Tax Evasion and Tax AvoidanceTaxation system is primarily complex as it aims to ensure transparency and fairness in entire system. Despite of tax policies for each transaction will certain meaning various people abuse taxation provisions in order to save tax whether it is morally or immorally. By considering various cases of tax abuse of years, G8 leaders had announced new tax measures for UK Taxation system with the objective to clamp down in...

LawsIncome tax assessment Act 1997 is one of the main statues for calculating income tax and an act of Australian parliament. Under the provision of section 8-1 of the income tax assessment act, 1997, some of the general deductions are provided that are listed below: Any loss or outgoing can be deducted from assessable income to the extent that Loss is incurred in conducting business for the purpose of producing and gaining assessable inc...

IssueThe main issue in the case study is to comment on the tax residency position of the concerned taxpayer Kit and to determine the available tax treatment on the derived income of Kit from different sources. Tax treatment of derived income of the taxpayer depends on the tax residency position of the concerned taxpayer. Tax treatment based on the tax residency position is outlined below (Barkoczy, 2015). Australian tax resident: Income ...

Tax Residency in AustraliaIssue The issue in the given case study is to discuss whether Kit is considered to be a tax resident of Australia or not and to determine the relevant provisions of ITAA 1997 through which his derived income (salary and investment) would be taxed. Different tax treatment exists in the Australian tax law for the earned income of the taxpayer for the respective assessment year depending on the tax residency of the ...

IssueIssue The issue in the case is to determine whether the benefits extended to Alan by ABC Ltd would be termed as fringe benefits or not. Further, Fringe Benefit Tax (FBT) payable on behalf of ABC Ltdneeds to be computed for various cases. Rule Electronic device: According to section 58 X of FBTAA, 1986, any electronic device such as mobile handset, laptop, MacBook which are extended by employer to the employee for work purpose wo...

Part AThe inspector general of taxation is an independent statutory office, which recognises the issues relating to the administration of law. They review the elements relating to the administration against the principles of good tax administration (Barkoczy, 2016). The inspector general of taxation provides an independent advice to the government. The functions and the powers of the inspector general of taxation are governed under the foll...

The Cultural Analysis of Virginia Woolf's Short Story1.Virginia Woolf short story disagreement with certain cultural values Virginia Woolf was simply more than a mere women’s writer; she was an excellent observer of everyday life. The same explains why her short story in a way or another contradicts certain cultural values (Woolf, 2016). The world that Virginia Woolf analyses in her short story are recognizable to the context in which s...

Section 100-35 of the Income tax Assessment Act 1997 defines Capital Gain and Capital Loss1: The Division 100 of the Income tax Assessment Act 1997 provides a guide to the capital or losses. The section 100-35 of the Income tax Assessment Act 1997 provides that a capital gain is made if the amount received from the CGT event is more than the cost associated with that CGT event and if it is vice versa then it is capital loss. That mea...

Question 1: ResidencyThe central issue is to determine whether the taxpayer Harry is considered to be tax resident of Australia or not. Further, the objective is to comment on the source of income derived by Harry and the relevant tax treatment available on the amount of income received in America.  In order to determine the tax residency status of the taxpayer s. 6(1) of Income Tax Assessment Act, 1936 would be taken into account th...

Determining Residency for Taxation Purposes1. (i) Whereas s.6–5 of ITAA, 97 states that all ‘Non-Resident Australian Taxpayers’ shall be taxed in Australia on all the incomes derived from sources inside Australia, s.6 (1) of Income Tax Assessment Act, 1936 (ITAA, 36) states that all ‘Resident Australian Taxpayers’ shall be taxed for all incomes which are earned from sources outside Australia, a...

Part AThe Income Tax Assessment Act 1997 under section 4-1 provides that an individual, company or any other entity is required to pay tax on the taxable income. The section 4-15 of the Income Tax Assessment Act 1997 states that taxable income can be calculated by deducting allowable deduction from the assessable income. The Income tax law classifies the assessable income as the ordinary income and the statutory income. The sect...

Case Study 1: Residence and sourceThe central issue is to decide the tax residency position of Kit and the relevant tax provisions applicable to determine the assessable income of Kit. The tax treatment is related to the tax residency position of the taxpayer. The Section 6(1) ITAA, 1936 provides the various aspects of tax residency of individual taxpayer. The leading tax ruling in this regards is TR 98/17 that highlights four essential...

Net Capital Gains or Losses CalculationThe main issue that is under consideration deals with the intention of discovering the capital gains and the losses that have been obtained from the asset sales that has been explained in “Section 108-20 of the ITAA 1997”. There are various laws that are associated with it and they are given below: “Section 108-20 of the ITAA 1997” “Section 108-10 of the ITAA1997&rdqu...

Rules and Laws for s 8-1 of ITAA 1997 in the Case of Big Bank LtdThe problem and the challenge that has been explained with respect to this case study tries to handle the cost of transporting the machine and obtaining allowable deductions in income tax. There are numerous rules and laws that can be applicable with respect to the case study and each of them are explained as follows:   Rules:  “Section 8-1 of ITAA 1997”...

Overview of the Case StudyWith the help of the given case study one would understand the taxability of income for musicians. There are several cases held regarding the taxability of income for musicians, since there was no separate law for them.  Hence in early 1980s Australia Taxation office had introduced certain provisions regarding the income for musicians. The provisions directly points out the income needs to be taxed and the income...