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Taxation Law Answers - Assignment

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Added on  2021-06-15

Taxation Law Answers - Assignment

   Added on 2021-06-15

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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
Taxation Law Answers - Assignment_1
TAXATION LAW1Table of ContentsAnswer to question 1:.................................................................................................................2Answer to question 2:.................................................................................................................3Answer to question 3:.................................................................................................................4Reference List:...........................................................................................................................7
Taxation Law Answers - Assignment_2
TAXATION LAW2Answer to question 1:Section 6 of the ITAA 1936 provides that income derived from the personal exertionor income that is derived from the personal exertion generally consist of bonus, fees, salariesor proceeds received from business or any other sum received as the bounty. Section 6-5 ofthe ITAA 1997 defines that usually most of the income that comes to the taxpayer is regardedas the ordinary income (Woellner et al., 2016). As evident in the current situation of Jennyshe was offered a sum of $1 million for narrating the story of her husband who was thefamous jazz singer that passed away recently. Initially, she was paid a sum of $500,000 as theadvance by the publisher for an interview. Section 6-5 of the ITAA 1997 defines that an item having the character of income thatcomes home to the taxpayer. An item having the character of income should be adjustedbased on the circumstances of its derivation by the taxpayer (Barkoczy, 2016). As held in thecase of “Brent v Federal Commissioner of Taxation (1971) ATC 4195” payment that isreceived for the making herself available for the interview by the journalist in order todisclose the facts related to her life with her husband and lending her name to stories writtenby the journalist will be considered as the assessable income (Tan et al., 2016 pp-329-344).Similarly in the case of “Federal Commissioner of Taxation v Holmes (1995) ATC 4476”held that the receipts of salvage reward payment by the marine engineer would be held asreward for service and forms the part of income. Receipts relating to the sponsorship money from the commercial firms and receiptsrelating to appearance fees for attendance in a function by the taxpayer may offer theinstances of receipts that are for the services rendered and does not constitute employment(Cao et al., 2015). Similarly in the case of Jenny, the receipts for making herself available forthe interview constitute receipts for reward of service but does not involve employment. Suchreceipts constitute income and attracts tax liability. The payment that is received by Jennywas the ordinary income based on the provision of personal service and would be consideredtaxable under section 6-5 of the ITAA 1997.The taxation ruling of TR 2005/01 is concerned with the carrying on the business ofthe professional artist (Saad 2014 pp-1069-1075). In regard to the distinctive nature of thearts profession the ruling lay down the guidance based on the principles to be implemented inascertaining whether the person is an artist and carrying on the business as the professionalartist.
Taxation Law Answers - Assignment_3

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