Taxation: Answers to 10 Questions

Running head: TAXATION
Taxation
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................2
Answer to Question 3:................................................................................................................3
Answer to question 4:.................................................................................................................4
Answer to question 5:.................................................................................................................4
Answer to question 6:.................................................................................................................5
Answer to question 7:.................................................................................................................5
Answer to question 8:.................................................................................................................6
Answer to question 9:.................................................................................................................7
Answer to question 10:...............................................................................................................7
Reference List:...........................................................................................................................9

2TAXATION
Answer to question 1:
The Australian taxation office defines that an individual might receive amounts that
are not subjected to tax. Therefore, the amount from gift are not included as the part of the
taxable income. According to Australian taxation office a gift that is a mere gift does not
possess the character of income1. As evident in the current situation of Susan received a
redeemable gift voucher of $300 with Jetstar for any flights.
As held in “Scott v Federal Commissioner of Taxation (1966)” a solicitor receiving
a 10,000-pound gift from the wife of long standing client out of deceased’s estate will not be
held as income2. An individual receiving an unsolicited gift does become the part of income
for the recipient simply because goodwill was inspired by the generosity. Similarly, in the
case of Susan the receipt of redeemable voucher constitutes a mere gift and cannot be
assessed as income.
Answer to question 2:
I. A monthly annuity payment – Ordinary Income
II. A dividend of $400: Statutory Income
III. The taxpayers receipt in Brent v FCT (1971): Ordinary Income
IV. The receipt of $50,000 by taxpayer: Statutory Income
1 Barkoczy, Stephen, Foundations Of Taxation Law 2014
2 Brokelind, Cécile, Principles Of Law: Function, Status And Impact In EU Tax Law (IBFD,
2014)