LAWS20060 - Taxation Law of Australia Assignment
Added on 2020-03-04
13 Pages2695 Words44 Views
By student name ProfessorUniversityDate: 29 August 2017.
1ContentsQuestion no 1..............................................................................2Question no 2..............................................................................7Refrences....................................................................................131 | P a g e
2Question 11.Facts of the caseThe business analyst have received certain flying points, in relation of his work from a largeconsultancy business. It is received free of cost for the work that he has done for the company ,which is like a reward and not specifically a part of his employement salary.Application of the lawAs per the TR 1999/6 of the Income Tax Assessment Act 1997, if any individual isreceiving flying points from a consultancy firms in relation to work related purpose.Itprovides that flight rewards received under consumer loyalty programs are generallynot taxable. However, it also notes that FBT may apply where a flight reward isprovided to an employee, or the employee's associate, under an 'arrangement' for thepurposes of the FBTAA, that results from business expenditure.The flight reward might also be subject to income tax if they are received by anindividual whoreceives the flight reward as a result of business expenditure2.Facts of the caseAmount is received from a crane hiring company from its customer for a damaged crane. Application of the lawAs per the Income tax assessment act 1997, if any income is received by a company in lieu of anyinsurance then same shall be taxable as business income. In the given case the amount received from acrane company will be taxable as its is just like the amount that it recives from the insurance company incase of any damage to the property of the company. Hence the amount received will be taxable asbusiness income.2 | P a g e
33.Facts of the caseFree business trip that is received by an individual from an alcohol supplier. The person is anightclub manager.Application of the lawAs per the specific provisions of the law, any business trip that is received by an individual is nottaxable, but the individual cannot claim any deduction on the same as well. For example if theindividual is spending $1000 on the trip from his own end, he cannot clai any deduction on thesame. Therefore in the given case, the overseas holiday is a free business trip, because thealchol supplier and the night club manager have work relations but the manager cannot claimany deduction on the trip, and the trip will not be taxable by the IT act.4.Facts of the caseIn the given case, the assesse has received certain extra funds for the purchase of canoes, fromits members and then the club returned the same.Application of the lawAs per the ITAA 1997, any amount of excess amount that is received by a company and that iseventually returned is not taxable. If the excess amount was not returned and was kept by theindividuals in that case that amount would have been taxable. Hence in the given case, theexcess amount that was received by the canoe club will not be taxable.5.Facts of the caseIn the given case, the assesse has received certain amount from a teelvsion station, beingnamed the best footballer and the amount was paid as a price was playing well in AFL.Application of the law3 | P a g e
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