Australian Regulatory Taxation System | Assignment

Added on -2020-02-24

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Running Head: TAXATION LAW PRINCIPLES TAXATION LAW PRINCIPLES
TAXATION LAW PRINCIPLES2Table of ContentsIntroduction............................................................................................................................3Question 1...............................................................................................................................4Issue....................................................................................................................................4Law.....................................................................................................................................4Application..........................................................................................................................6Conclusion..........................................................................................................................8Question 2.............................................................................................................................10Issue..................................................................................................................................10Law...................................................................................................................................10Application........................................................................................................................11Conclusion........................................................................................................................12Reference List.......................................................................................................................13
TAXATION LAW PRINCIPLES3IntroductionThis assignment has been presented with the objective assessing Australian regulatorytaxation system. While conducting process of describing and assessing current state ofAustralian regulatory taxation system, emphasis will be laid on the use of two case studiesassociated with taxation system in Australia. In one of the case studies, essentiality ofdiscussion on tax implication have been shown in case, a company’s (Aussie Ltd.)profitability is hampered due to high level import duty incurred on annual sales. Whiledeveloping this discourse, different issues associated with taxation principles on the taxpayer’s deductible expenses have been highlighted. In another case study, it has been shownhow it is essential to address principles of deductions and capital expenses in case of taximplications of incurred expenses. In this case study, emphasis has been laid on providingJames with suitable advice so that he can deal with tax implications of incurred expenses.While developing diametrical discussion associated with Australian taxation system, legalcases, rulings, and legislations have been referred, which are fundamental to Australiantaxation law. In this way, knowledge on Australian taxation system has been applied tohypothetical situation associated with given case studies.
TAXATION LAW PRINCIPLES4Question 1IssueBased on discourse associated with case study, there are some issues, which have beenexplored. Management of Aussie Ltd. has not shown efficiency in identifying tax relatedrisks in advance. The concerned organisation could not have been able to maintain integrityin reporting with the objective of aligning tax position with law. On the other hand,organisation’s profitability has been hampered to a great extent due to increase in spend onadvertising campaignsFrom the given case study, it has been inferred that Aussie Ltd, a subsidiary of Meranti Ltdhas been facing issues due to Australian Government’s decision on incurring high levelimport duty. As a result of this, annual sales of furniture have been impacted to a great extentand for covering this loss, Aussie Ltd. has no option but to focus on spending on advertisingcampaign and paying redundancy payment to employees.However, Aussie Ltd. has shown efficiency in investing sincere efforts to averting risksthrough increasing spent on advertising campaigns. In addition, company has takensignificant step through seeking Australian public to petition parliament in this return. In thisway, Aussie Ltd. has invested sincere efforts in influencing public opinion for averting risksof high import duty.LawFor dealing with taxation related issues, it is essential for Aussie Ltd to comply with IncomeTax Assessment Act of 1936 and Income Tax Assessment Act of 1997 so that taxgovernance’s effectiveness level can be increased. In addition, it is essential to follow taxgovernance related principles of Australian Taxation Office. Australian taxation is associatedwith various principles with respect to deductible expenses of taxpayers.These principles of Australian Taxation Office need to be dealt in an efficient manner so thatcompany can conduct its business activities without facing any issues associated with non-compliance with existing legal framework. First of all, it is essential to understand tax obligations along with various aspects,such as reporting and payment (Bell & Hindmoor, 2014). In addition, it is essential togain understanding on responsibilities pertinent to tax governance, administration and

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