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 Part B........................................................................................................................2
Answer to Question A:...........................................................................................................2
References:.................................................................................................................................6

2TAXATION LAW
Answer to Part B
Answer to Question A:
As stated under “section 6, ITAA 1936” when a taxpayer obtains income from
earnings, wages, salaries, commissions, wages, bonus etc. received in capacity of the
employee would be treated as earnings from private effort. Furthermore, under “section 6-5,
ITAA 1997” a larger portion of the income that is received by the taxpayer is treated as
ordinary income (Woellner et al., 2016). The law court in “Scott v FCT (1935)” stated that
earnings must not be viewed as art and requires the application of essential principles to treat
those receipts as income in agreement with ordinary conceptions and mankind usage.
As evident in case of Paul he is employed as a doctor at John James Hospital and
earns annual income of $175,000. He also works as the part-time lecturer at medical school in
Canberra and earns $65,000 per year. Referring to “section 6, ITAA 1936” the income
earned by Paul constitutes income from personal exertion (Blakelock & King, 2017).
Therefore, the salary from the employment at hospital and part-time lecturer would be
considered as assessable income under the ordinary meaning of “section 6-5, ITAA 1997”.
The court in “Lunney v FCT (1958)” travel amid the home and person’s place of
work is not allowed for deductions (Barkoczy, 2016). While “section 25-100, ITAA 1997”
allows the taxpayer to obtain deduction for the charges incurred in travelling amid the
workplaces. The travel must be related among the two workplaces where the profits
producing activities are performed by the taxpayer and neither of the place is the home of
taxpayer. The law court in “FCT v Wiener (1978)” permitted the taxpayer with the allowable
tax deduction for traveling expenses amid schools and also between home and travel between
home and the first and last school attended each day by the taxpayer (Sadiq, 2018).