Income Tax Assessment Act 1997 (Doc)
Added on -2020-07-22
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TAXATIONLAW
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Summary.................................................................................................................................1RESIDENT.............................................................................................................................2CAPITAL GAINS .................................................................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONIncome tax assessment act 1997 is imposed as an income which is generated by the taxpayers from different sources that in the Australia (Bentley, 2016). Freedom were provided tothem as per according to the categories and sales which is meet through the selling which theyhave done. The current case is based on Mr. Smith who lived in Australia and for employmentpurpose it moved to Hong Kong. After living 3 years he return back to Australia. There he salesdifferent expensive assets that is land, car, boat and antique. There is freedom on sale of theassets and taxation on those assets but the amount exceed the exempted on those categorises.SummaryGovernment charge taxes from taxpayer on the basis of their income which they earn infinancial year as per the given Income Tax assessment act, 1936. Now in the present case, Mrand Mrs. Smith who lived in Australia and work in computer consultant company in Melbourne.There annual salary is $100,000 and he also has a piece of land which they purchase in 1984.Land which they purchase is 50 Km far from Urban area. One of the advantage of this area isthat it is near to their office. Further, he wants to purchase land in rural area because they want tolive in less polluted area and far in healthy surrounding environment. For good earning theystarted to grow olive tress on their land as because olive oil is countable in luxury product. Thegrowth of tree take 5 years as it lead and after its it they started earning $10,000 through sellingolive oil in the restaurants which are located in Melbourne and Sydney. However, there is highcost charge in production as compare to olive seeds because of this reason they suffer from loss.Then they move to another country that is Hong Kong with their family on 20 may in2013. There he started doing job in senior academic post where he get double salary as compareto its old job. Along with this he also signed contract of fours years. Before moving to HongKong he started he had given his land on lease to his brother who was ready for doing businesson producing olive oil. All its interest his brother transfer to his Hong Kong bank account.Moreover, he also sold his car and boat at market price that is $5,000 and $16,000. Aftercompleting 2 years contract period his wife and family member are not happy and comfortable inliving the foreign country. Then he decided to move back to his home country with family. Aftersome time he got job in Melbourne at professor post where he started earning $250,000. Then hepurchases the house near to city and sell its half land which is useless for him at $1,000,0001
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