Taxation Calculation and Analysis

This assignment focuses on calculating the tax liabilities for two individuals, Rafael and an unnamed individual with a total assessable income of $34,750. It outlines the steps involved in determining taxable income by subtracting allowable deductions like work clothing expenses. The calculation includes applying relevant tax rates under ITRA 1986 and factoring in Medicare levy and PAYG withholdings. The assignment also delves into calculating Rafael's income considering various dividend types (fully franked, partially franked, unfranked) and their associated franking credits.

Running head: TAXATION LAW
Taxation Law
Name of the University
Name of the Student
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2:................................................................................................................4
Answer to Question 3:................................................................................................................6
Answer to question 4:.................................................................................................................6
Bibliogrphy:...............................................................................................................................8

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Answer to Question 1:
Computation of Income Tax Payable
For the year Ended 30 June 2017
a Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 18,000.00
Tax on Taxable Income
Up to $18200 Exempted
Total Tax Payable Nil
b Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 18,000.00
Tax on Taxable Income
Up to $80000 (32.5%) $ 5,850.00
Total Tax Payable $ 5,850.00
c Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 18,000.00
Tax on Taxable Income
rate 30% $ 5,400.00
Total Tax Payable $ 5,400.00
d Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 1,45,000.00
Tax on Taxable Income
Up to $87000 $ 17,547.00
above $87001 $ 23,735.00
Total Tax Payable $ 41,282.00
e Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 1,45,000.00
Tax on Taxable Income
Up to $87000 $ 26,000.00
above $87001 to $180000 $ 23,735.00
Total Tax Payable $ 49,735.00
f Calculation of Income Tax payable

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Particulars Amount
Assessable Income $ 1,45,000.00
Tax on Taxable Income
rate 30% $ 43,500.00
Total Tax Payable $ 43,500.00
g Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 2,65,000.00
Tax on Taxable Income
Up to $180000 $ 54,232.00
above $180000 $ 38,250.00
Total Tax Payable $ 92,482.00
h Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 2,65,000.00
Tax on Taxable Income
Up to $180000 $ 62,685.00
above $180000 $ 38,250.00
Total Tax Payable $ 1,00,935.00
i Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 2,65,000.00
Tax on Taxable Income
rate 30% $ 79,500.00
Total Tax Payable $ 79,500.00
j Calculation of Income Tax payable
Particulars Amount
Assessable Income $ 19,800.00
Tax on Taxable Income
Tax rate 27.5% $ 5,445.00
Total Tax Payable $ 5,445.00

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Answer to Question 2:
Computation of Medicare Levy and Medicare Levy Surcharge
Answer For the year Ended 30 June 2017
a Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income $ 21,335.00
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
Does Not have to pay Medicare Levy as the taxable income does not exceed the
threshold limit
b Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income $ 31,738.00
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
Does Not have to pay Medicare Levy as the taxable income does not exceed the
threshold limit
c Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income 55000.00
Medicare Levy 1100.00
Medicare Levy Surcharge 0.00
Medicare Levy and Surcharge 1100.00
d Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income 185000.00
Medicare Levy 0.00
Medicare Levy Surcharge 0.00
Medicare Levy and Surcharge 0.00
Exempted: Foreign resident for full year

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e Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income 2000000.00
Medicare Levy 0.00
Medicare Levy Surcharge 0.00
Medicare Levy and Surcharge 0.00
Exempted:
f Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income $ 1,23,800.00
Medicare Levy $ 2,476.00
Medicare Levy Surcharge 0
Medicare Levy and Surcharge $ 2,476.00
g Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income 120000.00
Medicare Levy 2400.00
Medicare Levy Surcharge 30.00
Medicare Levy and Surcharge 2430.00
h Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income 160000.00
Medicare Levy 3200.00
Medicare Levy Surcharge 48.00
Medicare Levy and Surcharge 3248.00
i Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income 105000.00
Medicare Levy 2100.00
Medicare Levy Surcharge 31.50
Medicare Levy and Surcharge 2131.50
j Calculation of Minimum threshold
Particulars Amount ($)
Minimum threshold (A) 900000.00
Threshold increase per child 1500.00

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Number of child after the first child 3.00
Total increase in threshold (B) 4500.00
Total Minimum Threshold (A+B) 904500.00
Answer to Question 3:
Computation of Rob Income
For the year ended 30 June 2017
Particulars Amount ($)
Gross Salary 32000
Add: Australian Source Bank Interest 150
Add: PayG 2600
Total Assessable Income 34750
Allowable Deductions
Less: Work Clothing 450
Total Allowable Deductions 450
Total Taxable Income under 4-15 ITAA 1997 34300
Taxable Payable under ITRA 1986 3059
Medicare levy 686
Less: PayG 2600
Tax payable 1145
Answer to question 4:
Computation of Rafeal Income
For the year ended ...
Particulars Amount ($)
Assessable Income 68000
Fully franked dividend
Franking credit 600
Un-franked Credit 1400
60% Franked Dividend
Franking credit 162
Un-franked Credit 738
Un-franked Dividend 1000
Total Assessable Income 71900
Taxable Income under 4-15 ITAA 1997 71900
Tax on taxable income 14914.5
Add: Medicare Levy 1438
Less: Franking credit 762

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PAYG 15100
Total Tax Payable 490.50

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Bibliogrphy:
Barkoczy, S., 2016. Foundations of Taxation Law 2016. OUP Catalogue.
Braithwaite, V. ed., 2017. Taxing democracy: Understanding tax avoidance and evasion.
Routledge.
Cao, L., Hosking, A., Kouparitsas, M., Mullaly, D., Rimmer, X., Shi, Q., Stark, W. and
Wende, S., 2015. Understanding the economy-wide efficiency and incidence of major
Australian taxes. Treasury WP, 1.
Davis, A.K., Guenther, D.A., Krull, L.K. and Williams, B.M., 2015. Do socially responsible
firms pay more taxes?. The Accounting Review, 91(1), pp.47-68.
Miller, A. and Oats, L., 2016. Principles of international taxation. Bloomsbury Publishing.
Morse, S.C. and Deutsch, R., 2016. Tax Anti-Avoidance Law in Australia and the United
States.
Pinto, D., 2014. State taxes. In Australian Taxation Law (pp. 1763-1762). CCH Australia
Limited.
Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D., 2014. Australian Taxation
Law Select: legislation and commentary. CCH Australia.