Taxation Law in Australia- Assignment
Added on 2021-06-17
17 Pages3460 Words86 Views
Political Science
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Running head: TAXATION LAW Taxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
TAXATION LAW1Table of ContentsAnswer to question 1:.................................................................................................................2Answer A:..............................................................................................................................2Answer B:...............................................................................................................................2Answer C:...............................................................................................................................2Answer D:..............................................................................................................................3Answer E:...............................................................................................................................3Answer F:...............................................................................................................................3Answer G:..............................................................................................................................4Answer H:..............................................................................................................................4Answer I:................................................................................................................................4Answer J:................................................................................................................................4Answer to question 2:.................................................................................................................4Answer to question 3:.................................................................................................................6Answer to question 4:.................................................................................................................8Answer to question 5:...............................................................................................................10Answer to question 6:...............................................................................................................11References:...............................................................................................................................15
TAXATION LAW2Answer to question 1:Answer A:The main functions of taxation in Australia is to administer and shape the taxation,excise and superannuation system that helps in funding the services for the Australians,providing effects to the social and economic policy1. The main functions of taxation inAustralia is to manage the legislations for taxation, superannuation and excise. By doing thisthe taxation system addresses the wide issues that impacts the revenue system of Australia. Answer B:While designing the good tax system equity consists of distributing the burden oftaxation fairly among the populations. The principles of equity consists of two basic elementsnamely the horizontal and vertical equity2. Horizontal equity represents that the taxpayersmust pay the similar amount of tax while vertical equity represents that taxpayers that are indifferent position must pay different sum of tax. Answer C: “Section 4-15” requires an individual to work out their assessable income during theincome year Taxable Income = Assessable Income – DeductionsStep 1 – The taxpayer should add up all the taxable income for the income year Step 2 – The taxpayer must add the deduction for the income year1 Barkoczy, Stephen,Australian Tax Casebook 2018 14E Ebook(OUPANZ, 2018)2Oishi, Shigehiro, Kostadin Kushlev, and Ulrich Schimmack. "Progressive taxation, incomeinequality, and happiness."American Psychologist73.2 (2018): 157.
TAXATION LAW3Step 3 – The taxpayer should subtract from the taxable income the total deductions to get thetaxable income3. Answer D: A progressive tax refers to the rate which increases the assessable value. It isgenerally segmented in the tax brackets that progress successively into the higher rates.Progressive tax system aims in achieving stronger purchasing power. Under this tax systemthe demand for certain commodities are either subsidized or a portion of the basiccommodities are increased. Progressive tax system aims in promoting growth anddevelopment in those areas which could have been difficult without the intervention ofgovernment. Answer E: “Section 15-2 of the ITAA 1997” includes the value of the allowances into theassessable income. Answer F: The “taxation ruling of TR 2004/15” provides guidance in ascertaining whether thecompany that is not incorporated in Australia will be considered as the Australian occupantunder the second statutory test of the meaning of “Resident of Australia” stated in“subsection 6(1) of the ITAA 1936”4. 3 Grange, Janet, Geralyn A Jover-Ledesma and Gary L Maydew,2014 Principles Of BusinessTaxation4 James, Simon,The Economics Of Taxation 2014
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