Taxation Theory, Practice & Law

Taxation Theory, Practice &
Law

Table of Contents
Question 1........................................................................................................................................3
a. ..................................................................................................................................................3
b....................................................................................................................................................3
c....................................................................................................................................................4
d....................................................................................................................................................4
e....................................................................................................................................................4
Question 2........................................................................................................................................4
a....................................................................................................................................................4
b....................................................................................................................................................5
c....................................................................................................................................................6
d....................................................................................................................................................6
e....................................................................................................................................................7
REFERENCES................................................................................................................................1

The present report is based on the laws and the rules regarding the assessable income and
the capital gain tax as per the Australian taxation. Further different items and things are
associated with different taxation provisions in accordance to which the exemptions are been
granted.
Question 1
In accordance to Australian Taxation, Assessable income of an individual refers to an
income that could be taxed, provided that an individual has earned enough for exceeding its tax
deduction or tax free limit (Chardon, Freudenberg and Brimble, 2016). The assessable income
are said as follows-
 Income earned by way of salary and the wages
 Gratuities, tips & the other types of the payment for the services provided
 Allowances for certain things such as car, laundry, travel and clothing
 Interest earned from the bank accounts
 Dividend received and the other income generated from an investment
 Overtime and the bonuses that is received by an employee
 Amount of commission that is received by the sales person
 Pensions
 Rent
If in case an individual is being paid by way of cash including the cash cheques then he or she
could declare cash as an income at the time they lodge for tax return.
a.
Tips from the customers is counted as an assessable income with respect to the Australian
taxation and ITAA 1977 (Freudenberg and et.al., 2017). This means that tips received from
customers of the value $335 for each is exempted from the tax as it is counted as an income on
person services.
b.
Income received by Emmi with respect to her working in the restaurant is counted as an
employment income which tends to seen as an assessable income of the value $ 25000. As per
the Australian taxation and ITAA 1977, assessable income of $25000 is considered as exempted
because it is below the taxable income limit.