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:.................................................................................................................................8

TAXATION LAW2
Answer to question 1:
Issues:
Is the taxpayer assessable for the amount received from employment under the
ordinary concepts of “section 6-5, ITAA 1997”?
Rule:
As defined in “section 6, ITAA 1936” income that are earned from the personal
efforts such as salary, commissions, wages, bonus, allowances etc. that is received in capacity
of the employee in respect of the services that are rendered are held as assessable income.
Commonly, the most of the income that comes in for an individual is regarded as ordinary
income within the ordinary meaning of “section 6-5, ITAA 1997”1. The decision made in
“Scott v CT (1935)” held that income is not held as the word of art and requires the
application of necessary principles in order to treat the receipts as ordinary income. The
receipts are ought to be treated in agreement with the ordinary conception and use.
The meaning of remuneration from employment was considered by the court in
“Dean & Anor v CFT (1997)” the law court held that retention payment that was made to the
key employees for remaining employed for twelve months’ period was regarded as income
under “section 6-5, ITAA 1997”2. A non-cash benefit might hold relation with the personal
services however when it is not convertible cash then it is not regarded as the ordinary
income. As held in the case of “FCT v Payne (1996)” the flight rewards which is received by
a person who performs services or the rewards has been received as the result of business
expenses, the amount is not held as assessable income because the flight reward has
1 Barkoczy, Stephen, Foundations Of Taxation Law 2014
2 Grange, Janet, Geralyn A Jover-Ledesma and Gary L Maydew, 2014 Principles Of Business Taxation