Understanding Taxation Law: Analysis of Taxable Income, Capital Gain and Loss, Tax Avoidance and Evasion

Taxation Law 1
Taxation Law

Taxation Law 2
Table of Contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................3
Question2.........................................................................................................................................4
Question 3........................................................................................................................................6
Question 4........................................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Taxation Law 3
Introduction
This report helps to understand the concept of taxation law and analyse the different aspects of
taxation. It also provides the data and information related to the taxable income and lays down
the different principles. It also provides the relationship between the capital gain and capital
losses in relation to the rental property. It also accesses the information regarding the annual
payment in respect of lotteries. It also discusses the principle of tax evasion and tax avoidance.
This report will explain the value and importance of taxable earning and various alternate
methods to realise and treat capital losses relatively to rental property. It will help the reader to
access and understand the facts and of tax avoidance & evasion. It will reveal the value and
importance of such evasion principles in management of businesses and companies of Australia.

Taxation Law 4
Question 1
Solution
Gross annual income can be known as the Annual payment income that can be earned by the
entities on the yearly basis. It can be stated that from the lottery an individual can earn a lump
sum and that can be received annually. The act of lottery is recognised as the gambling that
consist of receivables by drawing the number of prizes. There are different regulations that can
be established by the government in respect of lottery to protect the interest of the public in
general. It can be noted that if the winner receives the sum of the lottery then he/she is liable for
paying the amount of capital gain tax on that lottery. In the situation of annuity pay-outs, the
winner has an opportunity to earn the jackpots. It also consists of interest that can be
accumulated from the investment over the time period of annuity (Cai, et. al., 2017).
It can be asserted that rather than the payment of annuity income, the sum received by the winner
can be fixed every year with the amount of $50,000 and that can be restricted to the nature of
payout in a situation of family emergency and financial emergency. It can also be stated that the
winner has no capability to pay the more amount of investments as a result into the generation of
cash and that can be compared to the sum of interest that can be earned on annuities. Apart from
this, the payment of annuity income the tax can be levied on the $50000as they receive the
revenue of $50000 from the lottery.
The other reason recognising the revenue that can be earned from lottery as the income of annual
payment is that the individual has received the inflow of cash from the lottery for next 20 years.
It can also note that the number of estates of deceased after the death of an individual can be