Taxation Law

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Letter of Advice:........................................................................................................................2
Work Papers:..............................................................................................................................3
Work Related Income and Deductions:.................................................................................3
Capital gains:..........................................................................................................................4
Rental Property:.....................................................................................................................5
Income and Deduction from Other Sources:..........................................................................5
Tax Payable, Offsets and Levies:...........................................................................................6
References:.................................................................................................................................7

2TAXATION LAW
Letter of Advice:
To Isuruni
From Tax Consultants
Date: 14th January 2019
Dear Isuruni
We would like to address your taxation related problems through our letter of advice.
This letter seeks to inform you that you reported the gross salary of $140,000 and total tax
withheld of $42,232. The gross salary that is reported by you will be treated as ordinary
income under the ordinary concepts of sec 6-5, ITA Act 1997. However you can claim tax
offset for the tax withheld from your gross salary for reducing your income tax liability.
The information furnished by you also includes personal superannuation contribution.
The superannuation value can be claimed as allowable deduction to offer your true income.
You reported the capital gains from the sale of BHP shares. You should note that the shares
of BHP will be treated as Pre-CGT asset because you purchased the share before 20th
September 1985 and the same cannot be included for assessment. While your sales proceeds
from MYR shares produced capital losses. The capital loss can be carried forward by you
until a capital gains is made from the disposal of shares to set-off against the same.
The letter seeks to recommend that you must balance your income against your
expenses as this helps in enhancing your financial position with better savings ability. You
also reported the use of car for business purposes. The 80% of the car running expenses
incurred by you can claimed as deduction under section 8-1, ITAA 1997 as they were
occurred while generating your assessable income.