Taxation Law

Running head: TAXATION LAW
TAXATION LAW
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TAXATION LAW1
Answer 1
a) When it is apparent that a business action has been said to be carried out by a company
that is the topic which is considered to be dealt with Taxation Ruling 2019/11.
b) In div 30 of ITAA, 972 the deductibility of the gifts or the contributions whether they
can be made are laid down.
c) The maximum tax rate that an individual has to pay for the year 2019-2020 is the
amount of 54097 AUD $ with the addition of 45% on any amount which can exceed 180,000
AUD $3.
d) There can be an exemption of car as well as motorcycle as the provisions which have
been laid down in Sec 118.5 of ITAA ,974 from being subjected to capital gain taxation.
e) Any kind of item or an asset which has been misplaced or has been destroyed that was
in possession of the taxpayer before would be considered to have fallen under CGT as an event
of C1 according to the provisions laid down in 104-20 of ITAA, 975.
f) Any kind of income or revenue earned by the taxpayer which is considered to be under
the amount of 18,200 AUD $ cannot be included in taxation.
g) The legal code which has been considered to develop with the High Court’s decision
can be seen in the case of Hayes v FCT (1956) 96 CLR 476 was that any kind of amount which
1 TR 2019/1.
2 The Income Tax Assessment Act 1997 (Cth), div 30
3www.ato.gov.au,"IndividualIncomeTaxRates",Ato.Gov.Au(Webpage,2019)
<https://www.ato.gov.au/Rates/Individual-income-tax-rates/>.
4 The Income Tax Assessment Act 1997 (Cth), s 118.5
5 The Income Tax Assessment Act 1997 (Cth), s 104.20
6 Hayes v FCT (1956) 96 CLR 47.

TAXATION LAW2
has been received by the taxpayer which has been against any kind of services rendered by him
in the past instances needs to be used as or seen as a kind of CGT gain which is for the purpose
of assessability. It can be understood, in this situation that the amount or the price received from
the employer by the employee after providing the services which needed to be performed before
receiving the same amount for doing it again would be considered to be assessable income as a
capital gain of that employee. In case of deciding upon an instance where there is a difficulty in
the treatment of any kind of receipt which has been accepted from the previous employer for the
services rendered by the employee before where the difficulty is to whether to use the amount as
a capital gain or use it as an ordinary income. The income has been received because of personal
effort is considered to be treated as just another ordinary income. Nevertheless, if a receipt has
been accepted from the employer for whom the employee worked before and it has already been
accumulated but it has not been received by the taxpayer this would only be considered to be
received by the taxpayer and has been obtained as nature of an asset because the same thing has
not been obtained by the taxpayer as a lot of amount which has been accumulated by the
taxpayer for a succeeding period.
h) There are two kinds of income that can be earned by an individual who is a taxpayer
under the taxation law which has delivered categories of the taxable income. The ordinary
income is considered to be the first category under the taxation law. The statutory income would
be considered to be the second category under taxation law. The income which falls under the
category of general definitions of an income which is known to public who do not have any legal
understanding would be considered as the ordinary income. In order to evaluate such kind of
incomes there are no strict rules that needs to be conformed with which are also provided in the
statutes. If there is an absence of an y express which has not been mentioned in the statutory

TAXATION LAW3
provisions which is in connection to taxation the ordinary income would be considered to be
evaluated as an income. Therefore, from the above discussion, it can be understood, that income
that can be used as an income in the ordinary course would be considered to be an ordinary
income. Any income that has been specifically mentioned in the statutory provisions that is in
connection with taxation which is considered to be an income of a specific nature is necessary to
be considered as a statutory income. These income would be taxable only if these kind of income
has been mentioned as a legal provision which are confined in a statute. These are the type of
income which are not monitored as ordinary income but they need statutory acknowledgement in
order to be considered as an income7.
i) There are two different additional charges that are levied upon the taxpayers which are
the Medicare Levy and the Medicare levy surcharge. Some of the taxpayers are considered to
pay additional charges and also additional taxes which are to be paid by those taxpayers. The
Medicare Levy is considered to be presented for the health system of the public which is
prevailing in Australia. It is also imposed on the individual as a taxable income. It is to be paid at
a rate of 2%. The Medicare Levy Act, 19868 along with the ITAA9 imposed it. The Medicare
Levy Surcharge has been established for the individuals who have high income rate to spend
their money on their private health by investing in private health insurance for trying to decrease
the weight of Medicare. In this form of taxation it is only applied on the taxpayers who do not
have any kind of health insurance. This kind of levy is essentially executed on the total of the
income which is taxable and also on the Fringe Benefits which are relating to an single taxpayer.
It varies on the income of the different taxpayers which may be between 1%, 1.25% and 1.5%10.
7 Barkoczy, Stephen. "Foundations of taxation law 2016." (OUP Catalogue 2016).
8 The Medicare Levy Act 1986
9 The Income Tax Assessment Act 1936 (Cth)
10Barkoczy, Stephen. "Foundations of taxation law 2016." (OUP Catalogue 2016).