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Assignment on Taxation PDF

   

Added on  2021-02-19

9 Pages2527 Words19 Views
Taxation

Table of ContentsINTRODUCTION...........................................................................................................................1Question 1........................................................................................................................................1Question 2........................................................................................................................................3Question 3........................................................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7

INTRODUCTIONTaxation refers to a way of Government for collecting funds from general public andseveral corporate entities so as to manage and finance all the expenditure for welfare of wholecountry. In Australia, there is a separate body namely Australian Taxation Office (ATO) thatdeals with developing various laws, rules and regulations that would be applicable over eachindividual business, and other body corporate who performs several activities for the purpose ofearning profit. The present study includes taxation consequences of various taxation laws onvarious transaction incurred by a business entities or individuals. It also shows a sum to be paidby them as tax to the government for the gain generated through those transactions. It also showsnumerous provisions through which the the amount of tax shall be calculated for the individualor body corporate.Question 1Capital gainThe term capital gain refers to excess of sum received by an individual or a bodycorporate as a sale proceed over the cost of purchase if such asset. The Australian TaxationOffice has developed separate provisions for determining the taxable amount of such capitalgain.Capital gain taxCapital gain is a tax that is levied upon a business entity or an individual when they saleany asset and generates profit from the sales (Brown, 2018). As per the provisions of AustralianTaxation Office, the assets under capital gain tax includes shares, any contractual rights,personal collections such as antiques, historical properties and license, etc. in this order, incomeearned from the sale of such assets shall be liable to pay tax under the capital gain tax head ofAustralian taxation system.ProvisionsSale of any assets of the assets shall attract the provisions of capital gain tax towards it.The capital gain tax includes several clauses for sale of different assets in diofferent situations.An individual or a company or any other corporation who sales its assets, shall needs to considerall such provisions through for the purpose of calculating the amount of capital gain tax leviedupon such sale. 1

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