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Sample Assignment on Taxation Law (docs)

   

Added on  2021-06-17

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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
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TAXATION LAW1Table of ContentsArthur Murray (NSW) Pty Ltd v FCT (1965) 114 CLR 314.....................................................2Identified Facts in the Case:.......................................................................................................2Issue:..........................................................................................................................................3Conclusion:................................................................................................................................3Answer to A (i):.........................................................................................................................4Answer to (ii):............................................................................................................................4Answer to (b):............................................................................................................................5Answer to question (c ):.............................................................................................................6Answer to question B:................................................................................................................7Answer to Part B:.......................................................................................................................7Answer to question A:................................................................................................................7Answer to question B:................................................................................................................8Answer to question C:................................................................................................................8Answer to question D:................................................................................................................8Answer to question E:................................................................................................................9Reference List:.........................................................................................................................10
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TAXATION LAW2Arthur Murray (NSW) Pty Ltd v FCT (1965) 114 CLR 314Identified Facts in the Case:The facts evolving from the case are linked with the question those are simple andless in number. During the applicable years the company organized their business byproviding classes for dancing and generated variable amount of revenues in each hour. Thiscase elaborates the fundamental tuition courses that was made available as three options, 5,15, 30 hours respectively (Barkoczy 2016). These options were made available as privatetuition throughout a year of time span. Now when it comes to the payment of these coursestwo methods got highlighted either students have to pay as lump sum amount at the startingof the course or in instalments. However, the discounts were made available for immediatepayments for the course.In the books of company the fee structures that earned were getting immediatelycredited to the account name “Unearned Deposits- Untaught Lesson Account” (Kaplan andNadler 2015). These amounts from the lessons were equivalent to the lessons taught and alsothis was scheduled as periodical basis and got credited as “Earned Tuition Account”. Theincome tax returns were considered by the company based on the foothold that the moneyreceived in advance was not getting included as the taxable incomes during the time ofreceipt (Miller and Oats 2016). The committee following relevant trials on viewing the feeswhich was received in advance basis from the students. The tuition involves the nature ofincome that will be dependent on the recipient and that too from the moment of receiving inthe income year. The taxpayers indulged prepaid tuition fees as the form of income which is obtainedfrom the dance classes and this is kept in the books of account for the company (Panigrahiand Sarangi 2016). Moreover, there was no considered prepaid sum identified for the tuition
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TAXATION LAW3fees that can be considered as the taxable income for the taxpayers. Nevertheless, during thetime period of calculating the taxable income, it was identified that the fee structure that wasinvolved within the assessable incomes are mainly received from the dance classes.Henceforth, the considerable taxation commissioner stated that the taxpayer received theassessable income in the form of prepaid tuition fee structures (Saad 2014). This will happenin the time of the income year when the students will start paying the fees to the company.The receipt of prepaid tuition fees comprised a common income dependent on “section 25(1) of the ITAA 1997”.Issue: The issue comprised in this case is that did the taxpayers obtain the prepaid amount offees during the time of income year when it was received? The issue surrounding the casenecessitate the important assessment of the fact if the taxable income of the taxpayercomprises a prepaid tuition fees or not? Conclusion: The aim of the case was to appreciate whether the income that comes inside thecompany to the taxpayer in the form of prepaid was held as taxable income (Lang et al.2015). The court of law stated that the considered fees which were received in advance fordancing classes, then this kind of incomes are not part of the table incomes. The court of lawstated that there must be an agreement among the student and the company, that shouldcontains the policies that no refund will be provided on the prepaid fees. However, at the realpoint of time, the fees were refunded through taxpayer if there is no tuition or classesprovided to the students (Cvrlje 2015). The court of law approved that taxpayer did notinclude the tuition fees as the income during the income year, since then the policies areadopted for which it is clarified that there will be refund if the students are not getting the
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