Foundation of Taxation 3
This is in line with the ruling TR 2004/18 and provision for pre-CGT shares in section 140-230
of ITAA 19974.
e. CGT event B1 s104-15 tax?
Under the ITAA 1997, section 104.15 where the CGT event B1 is applicable when an individual
enters into an agreement with another entity to transfer ownership of an asset5. The title of the
asset may be transferred before or after the agreement is finalised.
f. Explain the formula contained in s4-10(3) ITAA 1997
This section covers how to calculate the income tax paid by an individual. The formula
prescribed is Income tax= ( taxable income x rate )−Tax offsets. Income tax is determined by the
amount of taxable income available in a financial year6. For companies, the income year is
usually the previous fiscal year. The amount of taxable income determines the rate while the tax
offsets are used to reduce the amount of tax liability. Division 63 of ITAA 1997 explains actions
to be made when the tax offsets exceed the tax liability7.
g. Significance of the High Court case, FC of T v Day 2008 ATC 20-064
The issue is the case was to determine whether a customs officer was entitled to deductions for
legal expenses incurred for defending himself against charges brought against him in the Public
Service Act 19228. The court referred to Ronpibon Tin NL vs. FCT (1949) to decide whether the
4 Legal Database. (2019). Retrieved from https://www.ato.gov.au/law/view/document?
DocID=TXR/TR200418/NAT/ATO/00001
5 Barkoczy, S. (2019). Foundations of taxation law (Eleventh ed.).
6 Above 2; Ibid
7 Income Tax Assessable Act 1997
8 Barkoczy, S. (2019). Foundations of taxation law (Eleventh ed.).

+13062052269

info@desklib.com

Foundation of Taxation

Contribute Materials

Related Documents

Taxation Law

Taxation Law

Law of Taxation

Taxation Law

Taxation Law

Taxation Law