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HA3042 Taxation Law Assignment (Doc)

   

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HA3042 Taxation Law T1 2018Individual Assignment
HA3042 Taxation Law Assignment (Doc)_1

TABLE OF CONTENTSQuestion 1..................................................................................................................................3Question 2..................................................................................................................................3Question 3..................................................................................................................................3Question 4..................................................................................................................................3References..................................................................................................................................4
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QUESTION 1 In accordance with the Sec 15-2 of the INCOME TAX ASSESSMENT ACT 1997,additional benefits provided by the employer in the form of gratuities, allowances, bonuses,benefits, compensation, and premiums are part of accessible income (Sec 15-2 of theINCOME TAX ASSESSMENT ACT 1997, 2018). It is irrespective of the fact that thatprovided perk can be convertible in money or not. This section further states that assessableincome of an individual is inclusive of all the perquisites provided in a direct or indirectmanner in against of services rendered by employee (Burkhauser, Hahn and Wilkins, 2015). On the basis of the agreement with the Daily Terror were established and considered, as bythis copyright would be owned by Hilary of his life story on writing it. Further, she would putthe copyright into sale for $10000 for the life story, and then the entire charge would not beconsidered as a reward for rendering service. Despite of the Brent v FCT (1971) 125 CLR418 case, the payment would be considered as a charge for the copyright sale. Furthermore,the payment can be still related as a general income in case Hilary was said to be operating ofbusiness engaged on purchase and selling of articles. However, it would be not likely as shehas never written a story prior to this. As per the assumptions, the payment of $10000 wouldnot be states as a general income, along with this it would not be measurable in accordancewith 15-2 of ITAA 1997, it is because it is not stated as a reward for rendering services but apayment provide for putting the copyright into sale. On the other hand, it would not beconsidered according to the capital gain tax (Sec 15-2 of the INCOME TAX ASSESSMENTACT 1997, 2018). However, if the deal is interpreted in a sense that the copyright to article has never beenowned by Hilary and that it will instantly vest with the article Daily Terror, then the situationwill be same as the Brent case and the payment will be further states as general incomebecause of the reward meant for services. According to the 15-2 of ITAA 1997, it would notbe assessable, due to the ordinary income gains are exclusive of the section s15-2(3)(d) ofITAA 1997. The newspaper Daily Terror provides Hilary with a total payment of $10,000 for herbiography, in a situation where she writes it and allots all the right, interest and title with the
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