BULAW5916 Taxation And Law Practice | Assignment

Added on -2020-02-19

| BULAW5916| 13 pages| 3400 words| 35 views

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Running head: TAXATIONTaxationName of the Student:Name of the University:Authors Note:
TAXATION2Table of ContentsAnswer to question A.................................................................................................................3Answer to question B.................................................................................................................4Answer to question C.................................................................................................................9Reference..................................................................................................................................12
TAXATION3Answer to question A.Black EconomyThe portion of the economy that grows at the cost of the government of a country, thatportion of the economy is known as Black Economy. Whereas on the other hand WhiteEconomy can be referred to such part of the economy which has been accounted for andwhich is considered to act within the country’s rules and regulations. Thus, black economy isjust the opposite division of a white economy (Williams, 2014). The economic activities in ablack economy are carried out not abiding by the guidelines and protocols of commerce ofthat country and thus the activities of such economy are not accounted for taxation purpose.Such activities may be legal activities and may also be illegal activities. It is not alwaysnecessary that those activities which are not accounted for taxation purpose must be illegal.Whether the activities are legal or illegal are identified by the nature and characteristics of thegoods and service of those transactions. As an example, if the payment of a worker who isengaged in construction works, takes place under the table even though the worker workslegally then in such cases the payment made to the worker will be considered as a part ofblack economy. The payment to the worker was made in such a manner to avoid taxation. Inthe above case, both the persons i.e. the worker and the person who made the payment in lieuof construction work have violated the protocols of the country so as to avoid taxation(Schneider et al. 2015).Shared Economy
TAXATION4A Shared Economy is such an economy where all the assets and services of theeconomy can be shared in exchange of either appropriate fees or may be without anycompensation or free among the private individuals of that country. In other words, it can besaid that in a shared economy an individual has the facility to derive or to lease assets orservices that are owned by some other individual of that country (Schneider, 2015). Since thebeginning of the society, the system of shared economy has been in use. Throughout theseyears the purpose have always been more or less the same only the process of sharing hasbeen changes. The sole purpose or objective of shared economy has always been to enhancethe lives of the people of the country. As the reason of introduction of internet in today’s life,sharing has now become a lot more possible and easy and that too at a huge level. In a sharedeconomy, the assets are used by groups or individuals in order to produce money and thisresulted in emergence of abundant opportunities in a shared economy that were absent in aclosed economy (Bitzenis et al., 2016).Answer to question B.A business operator in Australia under traditional business model is Cab Chargewhereas on the other and Uber is another business which operates under sharing economy inAustralia and both business operator i.e. Uber and Cab Charge is operating underTransportation Industry in Australia. Enlightenment of the numerous aspects that are linkedwith traditional and with shared economy and how under these models of an economy, thesecharacteristics effects the operations of the business of the organizations is the primaryobjective of this document (Ardizzi et al., 2014). In case of a shared economy, rights aregiven to the private individuals to utilise the assets that are not being used by the owners inexchange of some fees or may be for free which depends upon the nature of the asset that isto be used. But in case of Traditional Business Model, assets are only used by the owners forthe sole purpose of their own business they are not let out for the use of other neither for free

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