Taxation Australia Assessment 2022
Added on 2022-09-15
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Running head: TAXATION
Taxation
Name of the Student
Name of the University
Author Note
Taxation
Name of the Student
Name of the University
Author Note
TAXATION1
1)
a) The TR 2019/11, regulates the determination with respect to the instance at which any business
activity is being effected by a company.
b) the contention of the fact that gifts plus contributions can be given dealt as a deduction is
necessary to be assessed as per principle in div 30, ITAA972.
c) the uppermost rate relating to income tax that needs to be applied for the taxation year 2019-20
would be a sum of $54097 to be paid along with 45% for every dollar beyond $180,0003.
d) Both the vehicles namely a motorcycle or even a car needs to be made eligible to be counted as
an exempt from being exposed to CGT implications in accordance with s 118.5, ITAA974.
e) The article being lost or else demolished, owned priorly by taxpayer would be contemplated as
under C1 category event with respect to CGT in accordance to s 104.20, ITAA 975.
f) Any earnings the taxpayer gets falling under the required threshold amounting to $18200 will
not be comprised in assessable income for tax purposes.
g) The inclusion of the amount received from a former employer in the taxable income has been
provided for within the proceeding of Hayes v FCT (1956) 96 CLR 476. The contention has been provided
for in the proceeding that any reception that might have been availed by employee by the person who
employed him in past in relation to services with respect to employment previously extended would
require a treatment under the concept of CGT gain. This presents a glitch regarding the contention that
every income produced by the employment own exertion are to be included under the cover named
ordinary income. However, this amount even though has arisen from private exertion employed in past
1 TR 2019/1
2 The Income Tax Assessment Act 1997 (Cth), div 30
3 www.ato.gov.au, "Individual Income Tax Rates", Ato.Gov.Au (Webpage, 2019)
<https://www.ato.gov.au/Rates/Individual-income-tax-rates/>.
4 The Income Tax Assessment Act 1997 (Cth), s 118.5
5 The Income Tax Assessment Act 1997 (Cth), s 104.20
6 Hayes v FCT (1956) 96 CLR 47
1)
a) The TR 2019/11, regulates the determination with respect to the instance at which any business
activity is being effected by a company.
b) the contention of the fact that gifts plus contributions can be given dealt as a deduction is
necessary to be assessed as per principle in div 30, ITAA972.
c) the uppermost rate relating to income tax that needs to be applied for the taxation year 2019-20
would be a sum of $54097 to be paid along with 45% for every dollar beyond $180,0003.
d) Both the vehicles namely a motorcycle or even a car needs to be made eligible to be counted as
an exempt from being exposed to CGT implications in accordance with s 118.5, ITAA974.
e) The article being lost or else demolished, owned priorly by taxpayer would be contemplated as
under C1 category event with respect to CGT in accordance to s 104.20, ITAA 975.
f) Any earnings the taxpayer gets falling under the required threshold amounting to $18200 will
not be comprised in assessable income for tax purposes.
g) The inclusion of the amount received from a former employer in the taxable income has been
provided for within the proceeding of Hayes v FCT (1956) 96 CLR 476. The contention has been provided
for in the proceeding that any reception that might have been availed by employee by the person who
employed him in past in relation to services with respect to employment previously extended would
require a treatment under the concept of CGT gain. This presents a glitch regarding the contention that
every income produced by the employment own exertion are to be included under the cover named
ordinary income. However, this amount even though has arisen from private exertion employed in past
1 TR 2019/1
2 The Income Tax Assessment Act 1997 (Cth), div 30
3 www.ato.gov.au, "Individual Income Tax Rates", Ato.Gov.Au (Webpage, 2019)
<https://www.ato.gov.au/Rates/Individual-income-tax-rates/>.
4 The Income Tax Assessment Act 1997 (Cth), s 118.5
5 The Income Tax Assessment Act 1997 (Cth), s 104.20
6 Hayes v FCT (1956) 96 CLR 47
TAXATION2
the same is to be conceived as taxable as per CGT regime. With respect to rational provided by court in
the present context is the fact that follows. This earning has been devolved at past and was turned to lump
sum quantity, which was received by employee later on. This attaches a capital personality in that asset
leaving it to have the treatment of capital asset. The money needs to be assessed as per CGT
administration. However, the purpose of the employee in being devolved with the cash and the object
pertaining to employer in making available the cash is obligatory to be reflected prior to deciding upon
the same.
g) The taxability of an earning can be held by two mandates. The first one of the mandates
expects the earnings to be included as earnings pertaining to ordinary contemplation dominant with
respect to earnings inference of a normal person and do not need the sanction from any statutory rule for
rendering the earning assessable. Again, the another mandate necessitates the earnings to be declared as
earning only because of the statutory order. Such earnings will not be extended with recognition if
legislation backing up the earning contains no enumeration of the same. Hence, by virtue of these
mandates, it is clear that the earning of an individual needs to be categorized into 2 classes viz. the
earning under ordinary concepts in addition to statutory earnings. Ordinary earnings illustrates a receipt
that gains the status of earning, even in the absence express consideration from the legislation pertaining
to taxation. No authority is required for the purpose of rendering such an amount as an income. This is
owing to the fact that such a reception is measured as an earning denial of statutory concept. In addition,
statutory earnings would imply an earning only if it has been explicitly provided for in the legislation
governing taxation. In the event of the taxation legislation fails to make provision recognizing the same,
such earning would be denied inclusion as a assessable income belonging to the taxpayer. An illustration
of ordinary earning is any earning that the individual gains from applying personal toil along with labour.
However, the most befitting illustration of statutory earning is the CGT earnings7.
7 Barkoczy, Stephen. "Foundations of taxation law 2016." (OUP Catalogue 2016).
the same is to be conceived as taxable as per CGT regime. With respect to rational provided by court in
the present context is the fact that follows. This earning has been devolved at past and was turned to lump
sum quantity, which was received by employee later on. This attaches a capital personality in that asset
leaving it to have the treatment of capital asset. The money needs to be assessed as per CGT
administration. However, the purpose of the employee in being devolved with the cash and the object
pertaining to employer in making available the cash is obligatory to be reflected prior to deciding upon
the same.
g) The taxability of an earning can be held by two mandates. The first one of the mandates
expects the earnings to be included as earnings pertaining to ordinary contemplation dominant with
respect to earnings inference of a normal person and do not need the sanction from any statutory rule for
rendering the earning assessable. Again, the another mandate necessitates the earnings to be declared as
earning only because of the statutory order. Such earnings will not be extended with recognition if
legislation backing up the earning contains no enumeration of the same. Hence, by virtue of these
mandates, it is clear that the earning of an individual needs to be categorized into 2 classes viz. the
earning under ordinary concepts in addition to statutory earnings. Ordinary earnings illustrates a receipt
that gains the status of earning, even in the absence express consideration from the legislation pertaining
to taxation. No authority is required for the purpose of rendering such an amount as an income. This is
owing to the fact that such a reception is measured as an earning denial of statutory concept. In addition,
statutory earnings would imply an earning only if it has been explicitly provided for in the legislation
governing taxation. In the event of the taxation legislation fails to make provision recognizing the same,
such earning would be denied inclusion as a assessable income belonging to the taxpayer. An illustration
of ordinary earning is any earning that the individual gains from applying personal toil along with labour.
However, the most befitting illustration of statutory earning is the CGT earnings7.
7 Barkoczy, Stephen. "Foundations of taxation law 2016." (OUP Catalogue 2016).
TAXATION3
i) Two supplementary rates to be charged upon the liability of taxation of a being are the
Medicare levy surcharge along with the Medicare levy. These levies requires computation upon liability
of tax of a being already suffered. The Medicare levy has envisioned to extend support in relation to
Medicare operating in Australia guaranteeing the public health system being maintained. Any being
disbursing the revenue would be charged with Medicare levy to the extent of 2percent upon the net
liability of tax of a being. The legal recognition governing this levy are ITAA 368 along with the
Medicare Levy Act 19869. In addition, the other levy of the same kind is the Medicare levy surcharge as
to be levied upon beings fitting within the higher brackets of taxation to contribute in the way for personal
health insurance. This tax is being presented for keeping the load upon Medicare to be diminished. Again,
only beings who by now does not possesses any personal health Insurance will be rendered eligible for
imposition of this levy. This kind of tax requires imposition on the summation of the FBT along with
income tax pertaining to taxpayer. The percentage for this levy could be 1 percent, 1.25 percent and 1.5
percent.
2)
The two assessments to executed upon beings originating from Australia and leaving the territory of
Australia will be the resides test along with the domicile test included within s 6-1, ITAA3610. Two ideas
contained within this provision demands attention. These terminologies are “permanent place of abode”
along with “ usual place of abode”. These two terminologies are generally portrayed as identical yet again
these two has contained a negligible extent of variances remaining among them. The scrutiny of the two
ideas demands the preceding scrutiny of the terminology place of abode. The contented principle evolving
in the proceeding Levene v IRC (1928) AC 217 11, place of abode needs to be inferred as a living location
of the being where the being paying the tax has been residing in a particular instance. Again, the idea of
‘permanent place of abode’ is needed to be recognized in perspective of the situation of FC of T v
8 The Income Tax Assessment Act 1936 (Cth)
9 The Medicare Levy Act 1986
10 The Income Tax Assessment Act 1936 (Cth), s 6.1
11 Levene v IRC (1928) AC 217
i) Two supplementary rates to be charged upon the liability of taxation of a being are the
Medicare levy surcharge along with the Medicare levy. These levies requires computation upon liability
of tax of a being already suffered. The Medicare levy has envisioned to extend support in relation to
Medicare operating in Australia guaranteeing the public health system being maintained. Any being
disbursing the revenue would be charged with Medicare levy to the extent of 2percent upon the net
liability of tax of a being. The legal recognition governing this levy are ITAA 368 along with the
Medicare Levy Act 19869. In addition, the other levy of the same kind is the Medicare levy surcharge as
to be levied upon beings fitting within the higher brackets of taxation to contribute in the way for personal
health insurance. This tax is being presented for keeping the load upon Medicare to be diminished. Again,
only beings who by now does not possesses any personal health Insurance will be rendered eligible for
imposition of this levy. This kind of tax requires imposition on the summation of the FBT along with
income tax pertaining to taxpayer. The percentage for this levy could be 1 percent, 1.25 percent and 1.5
percent.
2)
The two assessments to executed upon beings originating from Australia and leaving the territory of
Australia will be the resides test along with the domicile test included within s 6-1, ITAA3610. Two ideas
contained within this provision demands attention. These terminologies are “permanent place of abode”
along with “ usual place of abode”. These two terminologies are generally portrayed as identical yet again
these two has contained a negligible extent of variances remaining among them. The scrutiny of the two
ideas demands the preceding scrutiny of the terminology place of abode. The contented principle evolving
in the proceeding Levene v IRC (1928) AC 217 11, place of abode needs to be inferred as a living location
of the being where the being paying the tax has been residing in a particular instance. Again, the idea of
‘permanent place of abode’ is needed to be recognized in perspective of the situation of FC of T v
8 The Income Tax Assessment Act 1936 (Cth)
9 The Medicare Levy Act 1986
10 The Income Tax Assessment Act 1936 (Cth), s 6.1
11 Levene v IRC (1928) AC 217
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