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Taxation Laws : Sample Assignment PDF

   

Added on  2021-05-30

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FinanceLaw
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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
Taxation Laws : Sample Assignment PDF_1

1TAXATION LAWTable of ContentsPart A:........................................................................................................................................2Arthur Murray (NSW) Pty Ltd v FCT (1965)............................................................................2Case Facts:.............................................................................................................................2Issue:......................................................................................................................................3Conclusion:............................................................................................................................4Answer to A (i):.....................................................................................................................4Answer to A (ii):....................................................................................................................5Answer to question A (iii):.....................................................................................................6Answer to Part B:.......................................................................................................................7Answer to question A:............................................................................................................7Answer to B:..........................................................................................................................8Answer to C:..........................................................................................................................8Answer to D:..........................................................................................................................9Answer to E:...........................................................................................................................9Reference List:.........................................................................................................................11
Taxation Laws : Sample Assignment PDF_2

2TAXATION LAWPart A:Arthur Murray (NSW) Pty Ltd v FCT (1965)Case Facts:The taxpayer involved within this case is licensed from United States as the companywhich organized the lessons for dancing for the pupil situated in Sydney and Melbourne.Now the taxpayer has given the students which will ensure that they are getting properlessons for the dancing skills (Athanasiou, 2014). The time period for these lessons wasscheduled for fifteen hours and this time period was distributed within a whole year timespan. The learner was enrolled under the business of the taxpayer who was required to signthe contracts associated with different rules and regulations. The rule which was introducedinto the contract is completely non- refundable and also the learner who enrolled for theyearly course were clearly made responsible for the course fees that they had to pay for thedance classes. The main point of the contract was that the amount paid by the learner was notcancellable and also the taxpayer is also not liable to return that money once the payment isdone. The section of the contract highlights that any request coming from the learner relatedto refunds will only be entertained if the causes are genuine and from the justified bases(Brody et al., 2015). However, the organization violated this contract and they have failed toprovide the refunds to the students who were unable to attend all the classes during the wholeyear, the organization provided explanation for this actions and they denied to return themoney the learner paid for the classes. The accrual” method of accounting was accepted by the taxpayer, so the full amountwas paid by the learning at the beginning of the course but there was not recorded in the
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3TAXATION LAWbooks of account of the organization. Instead of recording this transactions the taxpayer haskept the amount in “Unearned deposits”-“Untaught Lessons Account” (Courtney, 2014).Now the instructors for the dancing classes were supposed to take down the names with theircorresponding paid amounts for the dancing classes during the beginning of the classes. At the end of corresponding each month a comparable amount was gained uponimparting the dancing lessons was reflected into the account called “Earned TuitionAccount”. Accordingly, the amount was not considered as an income capital until the learnerhas got the lessons from the organization (Fegan & Stephens, 2012). Now after one incomeyear has been passed, the sum gathered in the account named “Unearned Deposits-UntaughtLesson Account” was considered as additional to the following year as well. According to the taxation commissioner issued an assessment of the amount whichwas dependent on the year of income along with the assessable income. This income wasultimately received by Arthur Murray in every end of the year. The taxpayer raised hisobjection against the assessment which taxation commissioner rose for checking the Board ofReview (Ferran & Ho, 2014). This review arranged by the board stating that the liquid moneywhich the tax payer is getting for the business is considered as the gross pay for the entirebusiness process and also this amount was highlighted as the assessable gains in the yearwhere this amount were collected from the learners in advance for purpose of providingdancing lessons to them. These facts directed the taxpayer to appeal in High Court ofAustralia. This description highlighted the facts about the case. Issue: The issue determines around weather the taxpayer has genuinely obtained the advancepayment for the tuition fees which they received during the year where dancing lessons weresupplied?
Taxation Laws : Sample Assignment PDF_4

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