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Indirect Tax Assessment Act 1997

   

Added on  2021-02-19

8 Pages2184 Words326 Views
TAXATION LAW

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11.BUSINESS AND PROFESSION.............................................................................................12.INCOME FROM HOUSE PROPERTY...................................................................................13.CAPITAL GAIN.......................................................................................................................24.OTHER INCOME....................................................................................................................35.DEDUCTIONS.........................................................................................................................3INCOME TAX RETURN............................................................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6

INTRODUCTIONIncome Tax Assessment Act, 1997 is established to provide the tax impositions,calculations & for collecting commonwealth income taxes. In Australia tax is imposed byfederal government over taxable earnings of corporations and individuals. Tax is levied bygovernment at progressive rates on individuals and on corporations at one out of two rates given.The Act gives provisions and guidelines about all the transactions which are required to bereported in the income tax return. The given case study is related to the Taxable Income of JoeHarper who is electrician and works as individual contractor (Sharkey and Murray, 2016). Thetax return is to be prepared to find out the taxable liability of Joe after taking into account all theincome he has earned during the year. The tax liability is to be reduced by claiming allowabledeductions. The report will give understanding about the tax provisions applicable whilepreparing tax returns. 1.BUSINESS AND PROFESSIONService Income$150000Mr Joe is electrician and contractor who earn income by providing services to the clients. Theincome earned from services is $ 150000 during the year. The whole amount earned by Joe isan assessable income and taxable as per ITAA,97 . The taxation department provides for theexpenses that can be claimed as deduction by the individual for services. The owing of $3000 istransferred by Joe directly from client to red cross as charity. The withholding tax is deductedon wages of the workers which is paid to government on behalf of the workers . There is nocredit for the withholding tax on the return of Joe as it is deducted from wages. 2.INCOME FROM HOUSE PROPERTYHOUSE INCOMERent Income60000Deductible ExpensesCouncil rates 1680Insurance850Repairs2185Trimming Shop Awning 750Repair of floor1200Interest5078Interest Accrued462122051

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