Taxation of Gambling and Cryptocurrency under ITAA 1997

Running head: TAX
Tax
Name of the Student:
Name of the University:
Authors Note:

1TAX
Table of Contents
Answer to Question 1 (a).................................................................................................................2
Question 1 (b)..................................................................................................................................3
Reference.........................................................................................................................................6

2TAX
Answer to Question 1 (a)
Section Discussion (MAX 200 words total)
section 6-5 of the
ITAA 1997
In accordance with the section6-5 of the ITAA 1997, taxpayers
include the gain or income from ordinary business as the assessable in
come. Further in case of gain from gambling the income is assessable
income under section 6-5, as this was regarded as an ordinary income,
which arise from ordinary business or investment activity. In addition
to that even if the gambling transactions are not form part as an
ordinary income, the profits or gains arising from the commercial
transactions with the intention to invest and earn profits will be treated
as ordinary income (Woellner et al., 2016).
Federal Commissioner of Taxation v. The Myer Emporium Ltd (1987)
163 CLR 199; 18 ATR 693; 87 ATC 4363 and Income Taxation
Ruling TR 92/3: 'Income tax:
Section 15-15 In case of no attraction or implementation of the section 6-5, section
15-15 of the ITAA 1997, the gains from gambling will be treated as
the profit making undertaking of plan that is performed for the purpose
of profits. Which means if the taxpayers involved on the transactions
to make profits from the isolated and commercial business section will
constitute an income (Braithwaite, 2017).