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TAXATION : The Concept of Taxation Act 1986

   

Added on  2020-03-28

12 Pages2441 Words39 Views
Running Head: TAXATIONTaxationName of the StudentName of the UniversityAuthor Note
TAXATION : The Concept of Taxation Act 1986_1
1TAXATIONANSWER 1IssueThe issue is regarding the measurement of the sustainable amount that can be obtainedfrom the loss or gain of the capital. The issue has to be discussed according to the Section 108-(10) of the ITAA 1997. Laws:i.“Section 108-(20) of the ITAA 1997”ii.“Section 108-(10) of ITAA 1997”ApplicationsTable 1.1: Yearly Net Capital Gain or Loss
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2TAXATIONFrom the figures obtained from the taxpayer, it is clear that the loss that has been incurredby selling the sound system is not enough to get approval to set off. The sound system is knownas personal asset. Thus, the loss that has been incurred from its sale is not eligible for set off. Theevidence for this discussion stated above is present in the guiding principles of “Section 108-(10) of ITAA 1997”. The section states that the loss which is collectable in nature is notconsidered for offset against the gains of ordinary nature that has been obtained from the sale ofshares and hence will not be allowed for set off (Dabner 2014). Keeping in mind the principles ofthe “Section 108-(10) of ITAA 1997” profits were produced by Eric by selling ordinary assetswhich did not have any existing yearly capital or reductions that can be relevant. As a result, Ericincurred a capital gain of $15,000.ConclusionFrom the discussion above, it can be stated that Eric cannot set off the loss that heincurred from the collectibles as the revenue was already received by him by selling the ordinaryassets.
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3TAXATIONAnswer 2IssueThe problem in this case is in computing the taxable value for the FBT year 2016/17, theconcept of which is described under the “Fringe Benefit Tax Act 1986”.Laws:i.“Fringe Benefit Tax Act 1986”ii.“Taxation Rulings TR 93/6”ApplicationsTable 2.1: Fringe Benefit Tax Calculations
TAXATION : The Concept of Taxation Act 1986_4

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