TAXATION2Answer to question 1: Issue:The present study is concerned with the determination of whether the lump sumreceived for the dissolution of deal should be taken into considerations as taxable incomeunder Section 6-5 of the ITAA 19971. Legislations: a.Allied Mills Industries Pty Ltd v. Federal Commissioner of Taxation(1989)b.Californian Oil Products Ltd (in liq) v. Federal Commissioner ofTaxation (1934)c.F C of T (NSW) v Meeks (1915) 19 CLR 568d.Section 6-5 of the ITAA 1997e.section 20-20 (2)Application:With reference to Section 6-5 of the ITAA 1997 receiving of $7,500,000 in the natureof compensation for the end of contract by the company Connect-IT would be treated asproceeds and it should be considered for duty as per the ordinary concepts2. As the generalrule in determining whether the compensation received by Connect-IT is proceeds or capitalin nature, it is very necessary to determine whether the terminated contract is allied inproviding service and is linked with the income production structure. 1ROBIN, H.AUSTRALIAN TAXATION LAW 2017. OXFORD University Press, 20172Blakelock, Sarah, and Peter King. "Taxation law: The advance of ATO datamatching."Proctor, The37.6 (2017): 18.

+13062052269

info@desklib.com