Taxation Law: Understanding Taxable Income, Principles of Tax Avoidance, and Property Share Taxation

Taxation Law
Question: 1
Yes.
This is because one of the ways that lottery companies pay their winners is by
annual installments (Brealey, 2012). as it is the case in this question. The initial
payment of the winner’s amount of $50,000 has its tax charged at the rate at that time
while the remaining amounts is charged at the rate at which the whole amount would
have been charged if it was paid at once but the tax is divided into equal proportions
(Hotelling, 2016). The estate of the deceased is also liable to paying taxed after the
death of the winner on the amounts they receive annually.
Question: 2
Taxable income is the amount of money used in determination of the total amount of
tax one will be charged (Chetty, 2009)
Answer- calculation on the excel sheet attached
Question: 3
This principle states that one is able to pay lesser tax by managing his finances and his
commercial affairs without being subjected to the punishment of the law of taxes
(Prebble, 2010), for instance one cannot be forced to pay additional taxes for
payments on employees of a given nation (Tanyanyiwan, 2014). This is relevant in
Australia today because it has saved many from being liable of their actions of
avoidance of taxes (Giddens, 2013).

Question: 4
Because Joseph was entitled to 20% of the total gain of the property while
Jane was entitled to 80%, this shows that 1:4 was the ratio of owning the property
respectively (Gilbert, 2011).
Tax deductions according to the tax income tax deductions in the property
share can either be claimed in the income from sale of the property or the rent from
the rentals (Yinger, 2016). Because the share of ownership in this case is known, the
income will be taxed individually according to the share of ownership (Shaviro,
2007). By selling the property, they will account for the capital loss in their ratios of
ownership that was regally established (Altman, 2010). In this case, 1:4