Taxation Law

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

TAXATION LAW1
Table of Contents
Answer to question 1:.................................................................................................................2
Issues:.........................................................................................................................................2
Rule:...........................................................................................................................................2
Application:................................................................................................................................4
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

TAXATION LAW2
Answer to question 1:
Issues:
The report will take into the account the tax consequences of the several employment
related receipts that are reported by the taxpayer in discharge of the employment. The issue
involves whether the taxpayer will be able to obtain allowable deduction for expenses that are
occurred in obtaining taxable income.
Rule:
As defined in “section 6, ITAA 1936”, income that are obtained from the personal
exertion generally comprises of the salaries, wages, bonuses etc. that are held assessable for
the recipient (Woellner et al. 2016). Provided that the receipts has adequate relation with the
income earning capacities of the taxpayer then it is held as the assessable receipts within
ordinary concepts of “section 6-5, ITAA 1997”. A large part of the income that is received by
the taxpayer is held as the ordinary income. The judgement in “Scott v CT (1935)” held that
income should not be viewed as a expression of art and there is an application of appropriate
principles to consider the receipts in accordance with the ordinary concepts (Braithwaite and
Reinhart 2019).
There are situations where the employers attract the candidates for employment
purpose by offering with the sign-on-fees. As stated by court in “FCT v Pickford (1998)” the
receipt of sign on fees by the fellow employee upon the joining of a new job was treated as
the payment for the future services and was income in accordance with the ordinary concept
of “section 6-5, ITAA 1997” (Barkoczy 2016).
Where a taxpayer obtains income from the personal services are regarded as the
employment payment and are treated assessable in the recipients hand. Similarly, in “Dean &