sharing economy Assignment Analysis

Running head: TAXATION LAW
Taxation Law
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TAXATION LAW1
Executive Summary:
The sharing economy mainly explains the rise of innovative business models that
simply uproots the traditional market, breaks down the categories in industry and makes
optimum use of scarce resources. The study would be highlighting on the sharing economy
business model and the traditional business model. The report would be speaking about the
business structures and the technique of their operations. The report would also deliver the
key changes among the two businesses which might make an impact on the assessment and
tax consequences under the present tax laws in Australia.

TAXATION LAW2
Table of Contents
Introduction:...............................................................................................................................3
The Black Economy:..................................................................................................................3
Sharing Economy:......................................................................................................................4
Sharing economy business model and traditional business model:...........................................5
Digital transportation business model (Uber):.......................................................................5
Traditional transportation system (Taxi)................................................................................6
Key differences between the two business models that effect taxation outcome......................7
Tax consequences under existing Australian tax law:...............................................................9
Conclusion:..............................................................................................................................10

TAXATION LAW3
Introduction:
The digitalization has harnessed increased amount of advantage from the internet
connectivity together with the obtainability of difficult data processing algorithms for
creating an online platform which matches parties that are willing to enter in the sharing
transactions. The business structure of sharing economy has backed to numerous economic,
communal and lawful issues. With the continuous growth in the economy size and broader
marketplace share it creates a pressure on the government for addressing and studying these
issues for redressing the rising distortions, but supporting the progressive innovation as well
(De Groen & Maselli, 2016). The main concern, forming as the core of the current article, is
whether the activities performed by the agents engaged in sharing economy is sufficiently
taken for levying duty. The present position states that the inadequate sharing economy exact
regulations aggravated by unfortunate discernibility of underlying activities leads to lower tax
collection from the final users and tax opportunities for the platform leading to a one-sided
competitive benefit over the competitors under the highly strict organized traditional sectors.
The report would be emphasizing on the business structure of sharing economy and
the traditional business model. The report would be addressing the business structures and the
method of their operations. The report would also provide the key differences among the two
businesses which might create an impact on the taxation and tax consequences inside the
present tax regulations in Australia.
The Black Economy:
Black economy can be defined as the people that operate completely out of the tax
and regulatory structure or those that are known to the establishments but does not rightly
report their duties relating to tax (Joshi et al., 2014). It includes wide-ranging practices,
together with the understatement of the takings, payments as well as receipt of cash pays off