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Taxation Law Assignment

   

Added on  2020-11-23

10 Pages2642 Words408 ViewsType: 408
Law
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TAXATION LAW
Taxation Law Assignment_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1 ..................................................................................................................................1Presenting treatment of annual payment of Annuity income......................................................1QUESTION 2...................................................................................................................................2Computation of taxable income of Corner Pharmacy.................................................................2QUESTION 3...................................................................................................................................3Principle laid down case of IRC v Duke of Westminster [1936] AC 1 and discussing itsrelevancy IN Australia in present time........................................................................................3QUESTION 4...................................................................................................................................5Allocation of losses of expenses and capital gain/loss on sale of property................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
Taxation Law Assignment_2

INTRODUCTIONTaxation is one of most crucial part for an individual, business and government.Individuals and organisation have to pay taxes on their income and GST(goods and sales tax)on sale of goods and services, while for government it is a huge source of revenue. In presentreport, treatment of income generated from various sources is presented along with capitalgain/loss and their taxation. along With this, discussion of principle established in case of IRC vDuke of Westminster [1936] AC 1 is done with its relevancy in present time of Australia. QUESTION 1 Presenting treatment of annual payment of Annuity incomeIssue: An individual of Australia won a lottery and received an amount of $50000 per year for20 years. Lottery was conducted by National Lottery Commission. For first year, $50000 waspaid immediately after informing him about the winning. For subsequent amount, annualpayments were paid on first anniversary of pyment. In case winner dies, remaining amount willbe transferred to estate of deceased by the commission.Rule: Australian taxation office: Income earned from lotterze is defined under subheading ofprize and award winning, of other income (Buchanan, J., 2018). As per this, income earned formlottery, raffles and lottos are not taxable in Australia.Section 160ZB: As per, Part 3 of Taxation Act, 1977 of Australia, winning from lotteryis treated as capital gains and Section 160ZB (2) defines that capital gain taxdo not arise on suchamount.Capital gain taxes: In case a property is purchased ffrom amount that is earned fromwinning lotteries and subsequently it is sold, capital loss/gain will arise. On profits, capital gaintax will be charged and a 50 % deduction can be claimed from tax.Amount transferred to Estate of deceased: In case a person is not nominated a aslegal heirs of the individual who ha won lottery, and in event of death of that person remainingamount winning will be transferred to estate of deceased (Mnk, Nagle and Coss, 2017) . Theamount in this account, is latter on distributed among legal inheritors of that person.Application: With application of ruling of ATO and Section 160ZB (2) -(3), it can be stated thatincome from any winnings is an assets but it can not be charged to capital gain tax. 1
Taxation Law Assignment_3

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