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:.................................................................................................................3
Answer to A:..........................................................................................................................3
Answer to B:..........................................................................................................................3
Answer to question 2:.................................................................................................................4
Answer to question 3:.................................................................................................................4
Part 1:.....................................................................................................................................4
Answer to A:..........................................................................................................................4
Answer to B:..........................................................................................................................5
Answer to part 2:........................................................................................................................5
Answer to question 4:.................................................................................................................6
Answer to question 5:.................................................................................................................7
Answer to question 6:.................................................................................................................8
Article 1: ATO measures of removing “inequitable” inquiry:...................................................8
Article 2: ATO considers measures for closing gap on multinational Tax Avoidance:........9
Answer to question 7:.................................................................................................................9
References:...............................................................................................................................11

TAXATION LAW2
Answer to question 1:
Answer to A:
According to the “Section 51 (ii)” the commonwealth has the exclusive power of
making laws in Australia. With regard to the “Section 51 (ii)” the commonwealth has the
authority of making laws that is associated to tax but it involves no kind of discrimination
among the state or any part of the country (Loveland, 2018). As per the “Section 51 (ii)” the
commonwealth has the legislative power of applying tax that remain entrusted with this
legislative provision and possess the authority of making constitutional laws.
Answer to B:
The Australian government is accountable for creating an overall improvement in the
tax policy and the treasury minister is accountable for applying the laws. The ATO is
accountable for framing tax policies and judicial process that demonstrates the relation
between the laws and administrative characteristics of the tax system (Dyzenhaus &
Thorburn, 2016). The management of laws relating to the tax and superannuation is
administered by ATO that are passed by parliament. To apply the laws, the government
imposes the tax which is formed by the ATO including the valuable advice to the taxpayers
regarding their obligations and duties.
An important role relating to the application and interpretation of the tax is played by
the ATO in Australia for the legislative cases that has definite civic importance. It also
includes the challenges that relates to validity of constitution and hearing appeals bought by
territory, state and federal courts. The structure of parliament includes the upper and lower
houses and the bills must be passed from the parliament. The lower house introduces the bills
of taxation and the bills are sent to upper house for final approval.

TAXATION LAW3
Answer to question 2:
Subject to the provision of paragraph (3), where the company of the contracting
country conducts business in the other contracting nation with the help of permanent
establishment that is located therein, then in each of the contracting country the business
profits will be attributable that might be anticipated to make if it was separate and
independent company indulged in the identical activities under the identical conditions for the
business that has the permanent establishment in that nation.
An enterprise is treated as the Australian occupant company provided that the
business’s central administration and control is in Australia (Dumiter & Jimon, 2016).
Therefore, the US and Australia DTA agreement explains that the business profits made in
one country state will be held taxable in that nation where its business operations are
performed. The court in “C of T (NSW) v Hillsdon Watts Ltd (1937)” explained that income
from business originates where the transaction occurs (McClure et al., 2017). With respect to
DTA the business income obtained by the US manufacturing company in Australia will be
taxable since the profits were sourced in Australia.
Answer to question 3:
Part 1:
Answer to A:
“Section 102-5, ITAA 1997” includes the net amount of capital gains for the income
year in their taxable income. The capital losses must be quarantined and can only be allowed
to offset against the capital gains that are not deductible while the net losses can be carried
forward (Jones, 2018). The capital gains is only allowed on the assets which is purchased
after 20 September 1985. Indiana on subdividing the land and disposing off for making
profits, any capital gains that are derived is included for assessment purpose. Nevertheless,