Taxation Law and Practice

TAXATION LAW AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Primary sources of commonwealth parliament............................................................................1
Tax law primary source................................................................................................................1
Taxation ruling TR 98/17.............................................................................................................2
Measurements of Medicare levy..................................................................................................2
Commonwealth and legislations..................................................................................................2
Specific deductions by ITAA 97 25-45.......................................................................................2
Case law and the significance of high court................................................................................3
Stock on hand and their valuation................................................................................................3
Tax to be paid for $45000 earning...............................................................................................3
PAYG collections........................................................................................................................4
PART B...........................................................................................................................................4
PART C...........................................................................................................................................5
PART D...........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Every country imposes different types of taxes classified mainly into two direct and
indirect taxes so as to obtain revenues and spend it in the social welfare and economic growth.
Australian Federal Government collects high proportion of their revenue in the form of income
tax. Evidencing it from the statistical data, in 2015-16, Australian government received $194.3
billion from individual income tax (Li, 2016). It is tax that government charges on the personal
income of an individual according to the designed tax framework and legislative system. The
main aim of the current assignment is to emphasize upon Australian taxation provision along
with its application for the different case studies. The report discusses various key aspects such
as commonwealth parliament’s taxation, commonwealth consumer legislation, medicare levy
and others. Besides this, different kind of allowable tax deductions that are available to an
individual will be provided and also properly evidenced by either the section or taxation ruling.
Applying the key provisions of Income Tax Assessment Act, the report will also compute
assessable income and tax deductions available to the person.
PART A
Primary sources of commonwealth parliament
The constitution of the commonwealth taxation is under section 51 of the parliament
ATO. It includes all the power and legislation of these law but without residual powers of
commonwealth. Federation from 1901 the laws have began to granting the powers to various
states of Australia (Porter, Allen & Thompson, 2014). The power to make laws and rules had
been described in the section 39-51 which facilitates the laws with all the legal rules and
regulations to be followed. The financial power and interest trade laws are described in various
sections of commonwealth law and ATO is in under ITCP (s51(1)) that provide necessary
information regarding trade and commerce in states and several foreign nations.
Tax law primary source
Public laws, internal revenue and income tax treaties are the various codes of federal laws
which are highly authorised and the primary sources of taxation. The treasury regulation can be
known by the IRS which made various rules and regulation. This facilitate the support to codes
and includes various taxation or revenue rulings, treasury decisions made by the taxation
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authority (Tran-Nam, Evans & Lignier, 2014). The taxation related rule and decisions are to be
made with the help of technical advices, revenue procedures and private latter.
Taxation ruling TR 98/17
Taxation rulings helps the ATO in deciding the various laws, rules and regulations
imposed over several acts and they provide rights and authority to such taxation acts. Rulings
fixed by federal legislation can be described under s6(i) of income tax assessment act 1936 and
ITAA 1997. TR98/17 of the acts provides information about the taxation policies to be followed
for residential in Australia which can be described as several different individuals who residence
in Australia such as Migrants from this nation, people come from different country for work and
employment purpose, students residents in Australia come from different nation for gaining the
education or enrolled in any college or university (Magnusson, 2014). It also includes tourists
who came in Australia for temporary visit or stay.
Measurements of Medicare levy
Medicare levy is a rebate that has been charged by the Australian government over
assessable income gain by the individuals which in context with facilitating or providing the
benefits health and care security to such individuals (Apps, Long & Rees, 2014). It can be
calculated by adding 2% of the taxable earning by persons. If an individual has gain the
insurance cover from the medical unit of registered hospital of Australia than he will not be
liable add any surcharge over his income. Medicare levy can be assign to those who are residents
in Australia, non residents are not facilitate with it.
Commonwealth and legislations
As per the Competition and consumer act 2010 of ITAA 1997 has facilitates many rules
and regulation to deal with the case in which a company is misleading or deducting cost of the
fine charged by the government which can be described under various parts of the section such
as XI Application of ACL as commonwealth law, IV Anti-competitive practice and etc. are the
parts which provides the necessary informations regarding this context.
Specific deductions by ITAA 97 25-45
ITAA 97 has many laws and rules that will facilitate the individual in claiming the
exemption or deductions over the income and expenditures made by him. As per section 25-45
the laws has facilitate the deduction for losses occurred by theft or robbery to a person or a
business (Hattingh, Low & Forrester, 2013). This helps in exempting the amount that has
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