LAWS20060 - Taxation Law of Australia | Assignment

Running head: TAXATION LAW OF AUSTRALIA
Taxation law of Australia
University Name
Student Name
Authors’ Note

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TAXATION LAW OF AUSTRALIA
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question (i):..............................................................................................................2
Answer to Question (ii):.............................................................................................................3
Answer to Question (iv):............................................................................................................4
Answer to Question (v):.............................................................................................................4
Answer to Question (vii):...........................................................................................................5
Answer to Question (viii):..........................................................................................................6
Answer to Question (ix):............................................................................................................7
Answer to Question (x):.............................................................................................................7
Answer to Question 2:................................................................................................................7
References................................................................................................................................11

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TAXATION LAW OF AUSTRALIA
Answer to Question 1:
Answer to Question (i):
The reliable clientele of airline companies is properly rewarded with specific Flight Point as
well as Reward by aviation companies that is essentially under the stipulations mentioned
rulings specified in TR 1999/6 (Lam & Whitney, 2016). The directives of TR 1999/6
mention that reward points or incentives that are accepted by different clientele from
organizations functioning in the airline segment are normally not taken into consideration
under taxation as a specific type of earning (Barkoczy, 2016). Particularly, this regulation
establishes the tax implications of different flight rewards that are accepted from specific
customer loyalty programs. Again, rewards barring the flight rewards are essentially not
taken into consideration in this specific ruling. In essence, for this specific ruling, a specific
flight reward has different characteristics that are mentioned as below:
- The reward necessarily comprises of a free flight, a flight upgrading or else free hotel
space or hiring of car that might be attached to such kinds of flights or else paid
flights (Braithwaite, 2017).
- Flight reward can be considered by a specific member or a particular member of
immediate family (Wu, 2015).
- Flight reward is essentially not transferrable against cash
- Flight reward is also not exchangeable for cash
Nonetheless, fringe benefits also might probably be implemented on particular points as well
as incentive in case of occurrence of below mentioned situations:

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TAXATION LAW OF AUSTRALIA- There remains a particular association between both the employer and workers. In
addition to this, the points or else incentives received from the flight are in fact
received by workers bearing in mind different employment proviso (Wu, 2015).
- Flight points or else rewards are delivered to the workforce based on a specific
business deal
The periodic flier compensation accepted by the workers of Web jet for carrying out work
related travel need to be taxed neither as Fringe Benefit nor as taxable income.
Answer to Question (ii):
Individuals from among the consumers receive a payment for damage of the capital asset
specifically during offering service to customer (Davis et al., 2015). However, in this specific
case, the total amount accepted as recompense for diverse harms caused cannot be analysed
under policies of taxation (Braithwaite, 2017). Nevertheless, this can be said to be taxable
under the receiver. The important factors that need to be considered in this regard are as
presented below:
- The resources or in other words the assets can be considered as capital and can be
vigorously utilized in the business functions of the recipient (Miller & Oats, 2016).
- The assets or in other words the resources of the firm have the need to be depreciable
asset. In this case, the estimated depreciation can be assessed for the specific assets
presented in the documentation (Pearce & Pinto, 2015).
- The payment received can be utilized for refurbishing parts of firm’s assets that get
damaged (Pearson, 2017).
A specific amount of funds is received for the damage caused by Crane Hire from the
customers. Essentially, this cannot be taken into account under definite cases of taxation and