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(Solved) Australian Taxation Law : Assignment

   

Added on  2021-06-15

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Running head: TAX LAWSTax LawsName of the studentName of the universityAuthor note
(Solved) Australian Taxation Law : Assignment_1

1TAX LAWSPart 1 Answer ACase FactsThe case of Arthur Murray (NSW) Pty Ltd V FCT (1965) 114 CLR 314 is related to Australiantaxation law. The case is related to determination of the assessable income of the taxpayer. Inthis case the company carried out a business if providing dancing courses for fees which variedfor hour to hour. The basic course of tuition which was present had 5, 15 or 30 hours of tuitionwhich could have been taken in a year by appointment. In addition there was course of 1200hours which a student could have taken anytime during their life. Advance payment had to bemade by instalments or in lump sum and the company provided a rage of discount in relation toinstant payments. For instance the lifetime course of 1200 hours could have been reduced by300 pounds where instant payment had been made. No right had been provided to the student toclaim a refund if the course could not be taken by them. However in reality the company at timesprovided the refund. Once fees had been received it was immediately credited to an “Unearneddeposits - Untaught Lessons Account". When the lessons had been taught the fees had beentransferred periodically to "Earned Tuition Account". The income tax returns of the companywas made based on the notion that the money in the untaught lessons account were not a part ofits assessable income when they had been received but actually become an assessable incomewhen the lessons had been taught. On the other hand a claim was made by the commission thatsuch income was to be treated as an assessable income of the same year where they had beenreceived and there was no difference between the money in Unearned deposits - UntaughtLessons Account and Earned Tuition Account.
(Solved) Australian Taxation Law : Assignment_2

2TAX LAWSIssue Before the court The issue in this case was to identify whether the view of commissioner or the view of the taxpayer was supported by legal provisions. If the view of the commissioner is to be taken than theadvance money received would be considered as an assessable income of the company and if theview of the company is taken the advance money received would not be considered as theassessable income of the company. The decision of the court In this case the court ruled in favour of the respondent company and dismissed the appeal madeby the minister. It had been stated by the court in this case that the money which was put into theadvanced account by the company and was received by the company as an advance fee for thetuition would not be considered as an assessable income till the tuitions have actually beenprovided by the company. The judges n this case relied on the case of Carden (1938) 63 CLR108 where t was stated that where the issue is related to the assessment of an income the purposeis to determine what profits have been received by the tax payer in a realizable form. The wordgain does not mean net profit in a business and it is also not synonymous with "receipts". This isthe amount which the tax payer has only been provided but also have “come home”. In this caseit was also stated by the court that the amount received by a business providing goods andservices for sale in advance is not to be considered as an assessable income of the business forthat year. Thus the court in this case also come to the conclusion that the advance which hadbeen received by the company would not be treated as an assessable income till the amount has“come home” to the company. 1.
(Solved) Australian Taxation Law : Assignment_3

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