Taxation Theory, Practice and Law

Taxation Theory,
Practice and Law

Table of Contents
1. Briefly explain different functions of taxation............................................................................3
2. Whether Amandeep needs to pay income tax on his salary and investment income explained
above................................................................................................................................................4
3. Discuss the tax treatment of this payment for Gary....................................................................5
4. Advise John on the assessability and deductibility of above events...........................................6
5. Calculate the amount allowed as deduction for the decline in value of the machinery and the
Holden car........................................................................................................................................7
REFERENCES................................................................................................................................9

1. Briefly explain different functions of taxation
Taxes
These assessments are defined as a fundamental withdrawal by the state, to support open bodies
and satisfy common interests. A sort of compulsory grant, by residents, for the espresso that uses
these benefits for the open and for a number of organizations, for example by promising open
support, value and moderation of the state or subsidizing jobs of ordinary interest , for example
roads or open works, to seek the procedural goals of money.
In particular, it is generally stated that evaluations can have four types:
1. The basic limit of the mandate is the possibility to fiscal function. It is through the way in
which the responsibilities foresee their work in supporting the state spending objectives for the
recognition of national projects and the introduction of state programs. A limit in terms of
liquidity presupposes the achievement of the critical social objective of the duty assessment: the
promotion of the activities of the State's spending plan is fundamental for exchanging with the
latter (obstruction, social proof, normality, etc.).
2. Acquisition functions: The skills to acquire those made to engage in the state or in the open
body are the necessary benefits to finance the open practice or to guarantee the functioning and
execution of a particular focus after a certain period of time.
3. Re-distributive function: Perhaps, there is talk of the potential of remodeling, if you choose
to overview the course of the duty to ensure a certain level of intrinsic value and social value.
The course area evaluation act provides their core as a standard parcel relationship tool and
involves the redistribution of social compensation between different categories of residents: from
wealthy to displaced persons postpone, which is finally to strengthen the social strength of the
population.
4. Promotional function: Finally, the allegations, if they are intended to assist and revive, or
despite what may be usual, have the special potential to weaken a particular concern of the
residents and may be modified to move concessions introduce tax, or, in fact, the responsibility
to impose controls to prevent residents.