Principles Of Taxation Law Answers Assignment - Desklib
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Added on 2020-02-19
Principles Of Taxation Law Answers Assignment - Desklib
Added on 2020-02-19
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Running head: PRINCIPLES OF TAXATION LAW Principles of Taxation lawUniversity NameStudent NameAuthors’ Note
2PRINCIPLES OF TAXATION LAW Table of ContentsSolution to Question 1:...............................................................................................................2Solution to Question (i):............................................................................................................2Solution to Question 1(ii):..........................................................................................................3Solution to Question 1(iii):.........................................................................................................3Solution to Question 1(iv):.........................................................................................................4Solution to Question 1(v):..........................................................................................................4Solution to Question 1(vi):.........................................................................................................6Solution to Question Vii.............................................................................................................6Solution to Question viii............................................................................................................7Solution to Question ix...............................................................................................................8Solution to Question x................................................................................................................8Solution to Question 2................................................................................................................8References................................................................................................................................11
3PRINCIPLES OF TAXATION LAW Solution to Question 1:Solution to Question (i): The trustworthy client of airline is rewarded with Flight Point and Reward by aviationcorporations that is necessarily covered under the directives stipulated under the TaxationRuling of TR 1999/6. In essence, taxation ruling as mentioned under TR 1999/6 states thatpoints or incentives that are received by diverse clients from corporations operating in theairline industry are generally not considered under taxation as type of income (Braithwaite,2017). Nevertheless, fringe benefits might possibly be executed on specific points andincentives in case if the following situations occur:--There is a specific association between the employer and the workers. Again, thepoints or incentive from the flight are in actual fact accepted by employees taking intoconsideration employment provision. -The flight points otherwise rewards are offered to the worker for a certain specificdeal (McGuire et al., 2014).The firm Web jet’s recurrent flier compensation received by the employee for workassociated travel shall be taxed neither as the Fringe Benefits nor as taxable earning. Solution to Question 1(ii):The individual from among the customer gets a payment for damage caused to the capitalasset during the period of delivering service to the customer. Then in that case, the amountreceived as compensation for different damages caused cannot be evaluated under taxation.However, this is taxable under the recipient (McGuire et al., 2014). The significant points thatcan be taken into account include the following:
4PRINCIPLES OF TAXATION LAW -The assets/resources can be treated as a capital need to be vigorously used in thebusiness process of the recipient.-The resources also need to be an asset that is essentially depreciable and anticipateddepreciation can be examined for the resources presented in the records (Dowling,2014).-The compensation amount accepted can be used for refurbishing parts of the resourcesthat are damaged A certain amount of money is accepted for the caused damage by the Crane HireCompany from the clientele. In essence, this is not to be regarded under cases of taxationthat is essentially not a taxable earning of the corporation provided that the abovementioned conditions are satisfied (Austin & Wilson, 2015). Solution to Question 1(iii):According to the Australian Taxation Office, gifts received in kind else wise in cash can beaccepted by a particular individual but cannot be treated as an element of earning.Thisparticular element of earning accepted is neither a part of non-exempted earning nor non-assessable earning. Essentially, small gift can be considered to be a certain category of a giftthat is eliminated during the period of enumeration of income tax of the individual (Austin &Wilson, 2015). Nevertheless, in case of receipt of huge quantity of gifts that can transforminto money, then that particular sum can be taken into account in the process of analysis bythe recipient.In this case, the supplier of alcohol has delivered the package of overseas holiday for free andthat is received by the executive of the night club. However, this can be taken into account inthe process of enumeration of income tax of the executive of the night club.
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