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BUSL320: Taxation Law And Practice

   

Added on  2021-06-17

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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
BUSL320: Taxation Law And Practice_1

TAXATION LAW1Table of ContentsBUSL 320 TAXATION LAW AND PRACTICE.....................................................................2Advisory Report:........................................................................................................................2References List:..........................................................................................................................7
BUSL320: Taxation Law And Practice_2

TAXATION LAW2BUSL 320 TAXATION LAW AND PRACTICEAdvisory Report: The current report is based on determining the assessability of income derived byJacinta Wells for the income year of 2016/17 and 2017/18. “Section 6 of the ITAA 1936”provides that income derived from the personal exertion or income generated personalexertion represents income that comprises of earnings, salaries, wages, commissions bonus,fees or proceeds derived from the business that are carried on by the taxpayer (Pinto 2013).“Section 6-5 of the ITAA 1997” states that most of income that comes home to the taxpayeris held as ordinary income. The court of law in “Commissioner of Taxation v Scott (1935)” have explainedincome that are as per the ordinary concepts (Woellner et al. 2016). As evident in the currentsituation of Jacinta Wells she lived in Melbourne and worked as the management consultant.She was employed in an American firm and derived a salary of $8000. The salary derived byJacinta is regarded as the income from the personal exertion and the same will be consideredfor assessment under “section 6-5 of the ITAA 1936” as income from ordinary concepts. Conversely, in the later instances it is noticed that Jacinta was required to moveSingapore to arrange the installation of the new computer system. Initially her salary waspaid in Melbourne bank account but from 1st May the salary of Jacinta was paid in herSingapore bank account. According “section 6-5(2), 6-10 (4) (a) ITAA 1997” residents areusually assessed based on the ordinary income and the statutory income derived from all thesources (Barkoczy 2016). When an individual residing in overseas they remain to be anAustralian tax resident and are taxes are levied on all the worldwide income but credits areavailable for offset relating to the foreign tax paid.
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