Taxation Law

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

1TAXATION LAW
Table of Contents
Answer to question 1:.................................................................................................................2
Requirement a:.......................................................................................................................2
Requirement b:.......................................................................................................................2
Answer to question 2:.................................................................................................................2
Answer to question 3:.................................................................................................................2
Part 1:.....................................................................................................................................2
Requirement a:.......................................................................................................................2
Requirement b:.......................................................................................................................2
Answer to part 2:........................................................................................................................2
Answer to question 4:.................................................................................................................2
Answer to question 5:.................................................................................................................2
Answer to question 6:.................................................................................................................2
Answer to question 7:.................................................................................................................2

2TAXATION LAW
Answer to question 1:
Requirement a:
The legislative power of Australia is widely spread between the states and common
wealth and the country is seen as the federation. The section “Section 51 (ii)” provides and
give description about the power of commonwealth. This particular section allows the
common wealth power to make the laws concerning the taxation without making any kind of
differentiation between the states. The substance that is considered when commencing the
“Section 51” is that the commonwealth is entrusted with the power to impose tax on the
states with such substance providing the explanation that they are subjected to constitution
and comes with the right for power (Graetz & Warren, 2016). In addition to this, “section
90” gives an explanation of the excise duties which the Commonwealth imposes and
application of tax on custom.
Requirement b:
The government of Australia is responsible for making any progress in the policy of
taxation along with the application of the taxation rest in the hand of minister of treasury. The
crucial role in the process of legislation and formation of policy of taxation is played by ATO
(Australian taxation office) and such role reflects the policies and law interdependence and
taxation system in the aspects of managerial role. Execution of all such system and policies
along making all the administrative arrangement is done by ATO (Daniel et al., 2016).
Moreover, they are also entrusted with the responsibility of educating the tax payer about
their rights and duties toward taxation.
In the event of determining the cases that have significant federal influence, the
application of the taxation and its interpretation is done by the High court of Australia along

3TAXATION LAW
with the hearing the appeals of court territory and questioning the applicability and validity of
law.
Answer to question 2:
In the situation of imposition of double taxation for the transaction between two
countries, taxes would be levied on one state only when business carrying out the activities in
another nation has permanent residence. In the given case, the business contract between US
manufacturers and sales representative in Australia, the tax liability would be attracted for the
profits made only to the extent of having permanent residential establishment in Australia
(Davison et al., 2017). Under section 6-10, ITAA 1997”, the amount of income that is
sourced from Australia are liabilities to be paid taxes by non resident. On other hand, taxes
should be paid by residents in Australia from all the sources according to “section 6-5, ITAA
1997”. It is only when the business activities are carried out, and the income generated from
such business are held for taxation. It is explained by the commissioner of taxation “C of T
(NSW) v Hillsdon Watts Ltd (1937)” that it is only when the actual activities are carried out,
then the income derived is held for taxation. In the given case, any amount of profits that is
made by Australia because of sales made by US manufacturers would be taxable in Australia
as per the agreement of double taxation because the profits are sourced in Australia (Cooper,
2017).
Answer to question 3:
Part 1:
Requirement a:
Implementation of capital assets is done on the assets for the event that occur after
20th September, 1985 and therefore, the implementation of the term Post-CGT and pre CGT
for the assets that are acquired after or on that date. The capital gain would be treated for