Taxation Law Question Answer 2022

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

TAXATION LAW1
Table of Contents
Answer to question 1:.................................................................................................................2
References:.................................................................................................................................6

TAXATION LAW2
Answer to question 1:
Issues:
The following issues that will be considered in this case are;
a. Whether the taxpayer will be considered liable for taxation relating to the salary
income received in the Westpac bank?
b. Whether or not the taxpayer be treated as accountable for tax relating to the receipt of
airline ticket and voucher for holiday in Paris?
c. Will the annual salary of $100,000 for the income year amounts to taxable ordinary
income?
d. Whether or not the compensation payment that is obtained by the taxpayer attracts tax
liability as ordinary income?
Rule:
As denoted within the “sec.6 of the ITAA 1936” receipts that are having the nature
payments will be considered as assessable earnings for those that receives it. There should
always be the adequate relation between the amount and the income producing activity of the
taxpayer. The factual decision that was cited by the taxation commissioner in “FCT v Hayes
(1956)” amount that is earned by the taxpayer from the product of personal services will be
held incidental of employment or the reward for performing the services (Barkoczy 2016).
While “sec.6-5, ITA Act 97” says that ordinary income usually amounts to income that a
taxpayer receives from every type of sources. As explained by the law court in “Californian
Copper Syndicate v Harris (1904)” ordinary income usually has the nexus with the income
making act of the taxpayer.