MA613 Assignment on Environmental Taxation Law
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Melbourne Institute of Technology
Taxation Law (MA613)
Added on 2020-05-28
MA613 Assignment on Environmental Taxation Law
Melbourne Institute of Technology
Taxation Law (MA613)
Added on 2020-05-28
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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
TAXATION LAW1Table of ContentsAnswer to question 1:.................................................................................................................2Answer to question 2:.................................................................................................................2Answer to question 3:.................................................................................................................3Answer to question 4:.................................................................................................................5Answer to question 5:.................................................................................................................6Reference List:...........................................................................................................................9
TAXATION LAW2Answer to question 1: Small business can be defined as the independently owned and operated organization,which is restricted in size and revenue based on the industry. A small business generallyrefers to the aggregate turnover, which is derived by the business in the ordinary course ofbusiness during the income year along with the yearly turnover of the entities connected withits affiliates (Barkoczy, 2016). The term is generally based on the value of the organizationassets, number of employees, total number of owners or the amount of gross receiptsgenerated. The meaning of the term small business is casually considered in the discussion toexplain that the companies are not public listed companies. An incorporated organization is regarded as the separate entity that pays its paysincome tax, which is different from the individual tax return. However, when it comes totaxes small business has very specific meaning one that controls or restricts the eligibility tonumerous tax relief (Snape & De Souza, 2016). Corporations might have pay the corporatealternative minimum exemption given that their business income exceeds the regular liabilityof tax. However, small business corporations are generally exempted. The definition used forthe small business in the taxation laws makes the use of aggregate yearly turnover of lowerthan $2 million. Answer to question 2:According to the budget of 2015-16, a declaration has been stated regarding the taxmeasurement that is applicable to the small business defined in the system of Australiantaxation. Small entities with carrying on the business activities with the aggregate yearlyturnover with less than $2 million will have reduced tax liability (Braithwaite, 2017). Thecombination of the impact of the tax associated measure over the approximations is to lowerthe tax income by $5 billion.
TAXATION LAW3Small business whether they are established or not established would be able to paylower amount of levy on their proceeds after 1 July 2015. For small business it will beimplemented in the form of decrease in the organization rate of tax from 30% to 28.5%. Onthe other hand for small business that are not incorporated the new tax rate will beimplemented based on the 5% tax offset but this would be capped at $1000 for everyindividual for every income year (Cao et al., 2015). Several proposal has been bought toreduce the rate for companies and bringing forward the general cut in the tax rate for thesmall business. Additionally there is a favourable regime for the small business as thecoalition policy to reduce the tax rate for the business. The favourable treatment of tax for the small business can be justified based on thesurroundings that if there are any form evidences that results in external impacts to theeconomy which is not entirely apprehended by these units. Nevertheless, there are numerouslevy measures which might misrepresent the choices along with the construction of thebusiness firm and profitmaking decisions regarding the types of spending. There arenumerous tax changes has been applied for the small business (Newman, 2016). Smallbusiness would be provided with the entitlement of exemption from fringe benefit given thatthey provide the employees with one or more eligible employment linked electronic devicesthat are portable even though these items have substantially identical functions. The smallbusiness is provided with the facilities of changing their legal structure without attracting theCGT liability at that point (Bevacqua, 2015). Small business would be provided with thefacilities of immediately reducing their range of professional expenditure that is related withthe starting of the new business such as proficient, lawful and secretarial device. Answer to question 3: For a small business lease or rental, property income derived for business purposewhether from the commercial shop or premises or form home office would be included in the
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