Questions of Taxation Law (pdf)

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Questions of taxation law
Table of ContentsINTRODUCTION...........................................................................................................................2MAIN BODY...................................................................................................................................2Question 1. Advising on the capital gain tax in different consequences....................................21. Provision on sale of the paintings...........................................................................................22. Provision relating to the selling of historical Sculpture..........................................................33. Capital gain laws regarding the sale of the Jewellery piece....................................................34. Exemption on capital gain in relation to the sale of picture....................................................4Question 2. Copyright.................................................................................................................4Question 3. Assessable income of Patrick...................................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................81
INTRODUCTIONTaxation law refers to the practice that relates with the assessment of the taxes and itspayment. The tax laws are introduced from the several sources. It comes from the state, local andthe federal government authorities. It involves the understanding, defending and theimplementation of the payment or the non payment of the taxable amount. Taxation lawsfacilitates the guidelines to the individual and the corporate regrading the exemption that can beenjoyed by them on the income gained by them. It enables the clients in understanding the lawsin context of tax and could help them in conducting the affairs of its business in such a mannerthat it would be advantageous or beneficial for them. The present study is based on theprovisions of the Australian Income tax system. Furthermore, it describes the consequences whenan individual can get the exemption on the capital gain for different items. Moreover, the studyalso throws deep highlights on the statutory laws in relation to the case laws.MAIN BODYQuestion 1. Advising on the capital gain tax in different consequences1. Provision on sale of the paintings.As in the case it is given that Helen's father who bought the painting in February 1985 forthe amount $4000 which had been sold by Helen on 1 December during the year 2018 for theamount $12000. Helen is selling the asset after the period of 3 years from the purchase so it willbe considered as the sale of the long term asset. The provision as per the Australian taxationsystem says that on the sale of any long term asset, the tax payment will be exempt if the gainascertained will be reinvested in specified securities (Ingles and Stewart, 2017). Therefore, inthis situation Helen will get full exemption for the tax amount on the amount gained by her onthe sales of the asset as she is reinvesting the amount earned on the asset into her business offashion designing. In case if the Helen is entitled to any claim against the sale of the paintingsuch as the claims relating to higher of the purchasing cost or on improvement on the capitalasset with the indexation of the original cost of the acquisition or any other improvement then thearises are eligible for 20% tax charges.2
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