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
Issues:.....................................................................................................................................2
Rule:.......................................................................................................................................2
Application:............................................................................................................................3
Conclusion:............................................................................................................................4
Answer to question 2:.................................................................................................................5
Issues:.....................................................................................................................................5
Laws:......................................................................................................................................5
Application:............................................................................................................................6
Conclusion:............................................................................................................................7
References:.................................................................................................................................8

2TAXATION LAW
Answer to question 1:
Issues:
The present problem is based on the determining the GST consequences for the
numerous transactions that are reported by the taxpayer.
Rule:
The conception of supplies associated with Australia is considered relevant in
ascertaining whether the supply is the taxable supply and it is subjected to GST. According to
the “section 9-5, of the GSTR 1999” an individual makes the taxable supply if the supply is
made for consideration (Woellner et al., 2016). It also includes the supply an individual
makes during the course of carrying on the enterprise or the supplies which is associated with
Australia.
Where the supply involves gifts then it is not treated as taxable to either the giver or
the receiver of gift. The ATO in certain situation might have the reason of imposing tax on
the gifts where the amount of gifts goes past more than $10,000 during the year. Gifts below
the stated limit is considered as GST-free supplies and attracts no tax liability.
As per ATO, if an individual is considered registered for GST or they are required to
be registered for goods and service that is sold in Australia then it is generally considered as
the taxable sales unless the provision of GST-free or input taxed is applied (Barkoczy 2016).
An individual is required to pay GST on the taxable sales that one makes when they lodge the
activity statement. However, the ATO also allows a taxpayer to claim GST credits that is
included into the purchase price to make the taxable sales.
There are several transactions that comprises of exchange of numerous rights and
obligations among the parties that are under the transaction. The court in “C of IR v. New
Zealand Refining Co. Ltd (1997)” explained that the actual character of transaction may be