Taxation Law Of Australia
Added on 2020-10-22
14 Pages3968 Words303 Views
Political Science
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Taxation Law OfAustralia
Table of ContentsINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1A) Taxation ruling TR 2018/4 ....................................................................................................1B) Division of income tax assessment act 1997 details available tax offset...............................1C) Top tax rate applicable to a resident taxpayer in the 2018/19 tax year...................................1D) Example of an asset that is exempt from capital gains tax, including its legislative reference......................................................................................................................................................1E) CGT event B1 s104-15 tax......................................................................................................2F) Formula contained in s4-10(3) ITAA 1997.............................................................................2G) Significance of the High Court case, FC of T v Day 2008 ATC 20-064 in the topic ofdeductions....................................................................................................................................2H) Difference between marginal rate of tax and average rate of tax...........................................2I) Consumption tax......................................................................................................................3QUESTION 2...................................................................................................................................4a....................................................................................................................................................4b....................................................................................................................................................4c....................................................................................................................................................4d....................................................................................................................................................4e....................................................................................................................................................5QUESTION 3 ..................................................................................................................................5a. Andy owns some land along with grants a lease to Brian for five years with premium of$5000............................................................................................................................................5b. Purchase of 100 acre farm outside Adelaide............................................................................5C) sale of house that was purchased in 2006...............................................................................5D) net gain of Chris......................................................................................................................6QUESTION 4...................................................................................................................................6A) Prize received worth $2,000 for the best TV advertisement of the year................................6B) Amount received for business travel.......................................................................................6C) Phone received from client.....................................................................................................7
D) Damage received for personal injury......................................................................................7E) Income from shares and securities..........................................................................................7QUESTION 5...................................................................................................................................8Nisu case study............................................................................................................................8REFERENCES..............................................................................................................................10
QUESTION 1A) Taxation ruling TR 2018/4 This is related to income tax and It is helpful in determining effective life of depreciatingassets. Commissioner calculates declining value of assets over a period of time (Graetz andWarren, 2016).B) Division of income tax assessment act 1997 details available tax offsetDivision 13 of income tax assessment act 1997 have detail about tax offset (Mangioni,2015). C) Top tax rate applicable to a resident taxpayer in the 2018/19 tax yearTaxable income ($)Tax on particular income0-18200No tax applicable18201-31000People those fall into this category will have topay 19c for each $1 over 1820037001-90000Residents who have income between 37001-9000 have to pay $3572 plus 32.5c (for each$1) over 37000 (Individual income tax rates,2019)90001-180000People fall into this category will have to pay20797 plus 37c over $90000 (for each $1)180001 and above thisResidents those who have income more than180001 and above have to pay tax rate$54097plus 45c over 180000 (for each $1)(Basu, 2016)D) Example of an asset that is exempt from capital gains tax, including its legislative referenceCar or motorcycle get exemption from capital gains tax (CGT). Car or motorcycle carryless than one tonne load and less than 9 passengers travel by such vehicle hence it has exemptionfrom tax. Section 104-230 of income tax assessment act 1997 explain this exemption element(CGT assets and exemptions, 2019).E) CGT event B1 s104-15 taxThis event is applicable if the organisation make contract with other enterprise. In this firstparty can enjoy and use the CGT asset before passing rights to other entity. Title or ownership ofthat asset will be passed to other party or entity at the time of end of agreement (Berns, 2018).1
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