Case Study on Taxation Law

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

TAXATION LAW1
Table of Contents
Heading:.....................................................................................................................................2
Issues:.........................................................................................................................................2
Rule:...........................................................................................................................................2
Application:................................................................................................................................5
Conclusion:................................................................................................................................8
References:.................................................................................................................................9

TAXATION LAW2
Heading:
The current case is based on the taxability of the transaction reported by the taxpayer
in the relevant tax year.
Issues:
The issues involving in this case are;
a. Whether the amount or the benefit that is got by taxpayer will be included into the
chargeable income as ordinary earnings under “sec 6-5 ITAA 1997”?
b. Whether the outgoings occurred by the taxpayer will be considered for allowable
deduction within “sec 8-1 ITAA 1997”?
Rule:
As explained in “sec 6 (1) ITA Act 1936” income that is obtained from the “personal
exertion” commonly means income comprising of salaries, wages, bonus, allowances etc. for
providing any service in capacity of an employee (Woellner et al. 2016). There should be a
sufficient relation among the amount or the benefit which is received by taxpayer and the
“personal exertion”. The court in “Dean v FCT (1997)” the issues involved the retention
that was paid to the employees for agreeing to be in employment for 12 months after taking
over was considered as income.
As per “sec 58 X of FBTAA” there are some work-related objects which is commonly
exempt from FBT when the items are used by the employee in his or her employment (Sadiq
2019). However, the item is subject to a limit of one item of each type per employee every
year. The examples include, briefcase, tool of trade or computer software etc.
As given in “sec 8-1 (1) ITAA 1997” a taxpayer is allowable to get an income tax
deduction from their chargeable pays any loss or expenditures till the extent that the same has