Taxation Law - Study Material with Solved Assignments and Essays

Running head: TAXATION LAW
Taxation Law
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1TAXATION LAW
Table of Contents
Part 1:.........................................................................................................................................2
Part B:.........................................................................................................................................7
Case Facts:.............................................................................................................................7
Decision and main principle applied in the judgement:.........................................................7
Relevance of case and likely decision on similar facts:.........................................................8
References:.................................................................................................................................9

2TAXATION LAW
Part 1:
A receipts that a taxpayer receives from the employment and from giving any
personal services is subjected to taxation on income for the employee. As defined in “sec 6-
5, ITA Act 1997” ordinary income refers income on the bass of ordinary concepts. The
commissioner in “CT v Scoot (1935)” held that interpretation of income must be made on the
basis of the ordinary concepts (Barkoczy 2014). A nexus of connection with the receipts of
the taxpayers from the personal services is treated as ordinary income. Citing “CT v Scoot
(1935)” the gross cash salary received by Jane is a taxable income under “sec 6-5, ITA Act
1997” because the receipts has the nexus with the Jane’s employment.
Unanticipated or voluntary payments that is received by the taxpayer as the incidence
of employment is regarded as ordinary income. Similarly, in “Laidler v Perry (1965)”
Christmas bonus given to the employees was treated as income (Grange, Jover-Ledesma and
Maydew 2014). The performance bonus constitutes an income for Jane since it results from
the incidence of employment. As the bonus is declared and received after the end of income
year of 30th June 2018, it is not included for assessment purpose.
Conventional clothing is non-deductible under “sec 8-1, ITAA 1997”since the
outgoing are not incurred in gaining taxable income and it is held as private or domestic
expenses. In “Mansfield v FCT (1996)” outlays on ordinary clothing apparels was not
allowed for deduction irrespective whether it is necessary to maintain a property look at work
(Jover-Ledesma 2014). The expenses on jewellery and formal office dress by Jane is not
allowed for deduction under “sec 8-1, ITAA 1997”.
In “Moore v Griffiths (1972)” simple winnings from prize was not held as income.
However, the prize winnings may be an income given the receipts holds connection with the
income producing activities of the taxpayer. In “FCT v Kelly (1980)”prize for best football