Taxation - Principles and Laws in Australia

Running head: TAXATION
Taxation
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION
Table of Contents
Answer to question 1..................................................................................................................2
Answer to Question 1 A:............................................................................................................2
Answer to question 1 B:.............................................................................................................2
References:.................................................................................................................................5

2TAXATION
Answer to question 1
Answer to Question 1 A:
Section Discussion
Section 9 According to the “Section 9 of the ITAA 1997” the income of the
taxpayers during the taxation year from the property or the business
represents the profit of the taxpayer from that business or property
during the year (Coleman, Cynthia, and Sadiq 2013). A mere windfall
gains does not possess the character of income. For example,
gambling winnings are not treated as the income unless the individual
taxpayers is carrying on the business of gambling. The gambling
returns are considered for taxation purpose under “Section 6-5 of the
ITAA 1997” as the ordinary income and it is included into the taxable
income of the taxpayer during the relevant year of derivation of such
income.
Section 12 According to the “Section 12 of the ITAA 1997” an individual
taxpayer is specifically required to include certain items while
calculating the income from business (Paul 2013). As held in
“Graham v Green (1925)” the sole means of earning livelihood for
the taxpayer was from gambling business. Arguably, there are people
that rely on the activities of gambling as the primary income source or
perform gambling business instead of indulging into the gambling as
the hobby.
Answer to question 1 B:
Is this statement correct?
State: No this statement is not correct