Taxation Theory, Practice & Law

Taxation Theory, Practice &
Law

Table of Contents
INTRODUCTION...........................................................................................................................3
Question 1........................................................................................................................................3
Identification of facts...................................................................................................................3
Rulings.........................................................................................................................................3
Application..................................................................................................................................4
Conclusion...................................................................................................................................7
Question 2........................................................................................................................................8
Part-A (FBT)................................................................................................................................8
Part-B Taxable value of FBT.......................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The assignment takes into consideration an understanding of the Australian Income Tax
Appraisal Act, as well as various meanings of FBT, revenue, and allowances, as well as various
other criteria. It will continue with the terms of gross obtainable profit, tax liability, tax benefit,
as well as other income tax-related matters. Susanne, whom resides in Australia as well as being
unmarried, has a first concern about her tax liability. She has an outstanding home mortgage but
has not taken out such a life insurance policy. Her employer also pays a 9.5 percent
superannuation contribution. She earns the majority of her income from wages and passive
income provided from stock investments. The ideals of FBT are taken into consideration in the
second mission. An example of FBT as well as its distinguishing characteristics is already given.
The taxable value of remuneration also was calculated using a system of statutory formulae.
Eventually, the paper summarises the total information obtained and includes a summary of the
research.
Question 1
Identification of facts
In this case, taxable sales, taxable profits, tax obligations, and student debt are all factored
into the equation. Susanne seems to be the individual citizen in Australia that has to file taxes in
2020-21. Susanne's gross net income is S90,000, with withheld tax, although she does not really
have a private health insurance scheme. Her prior college loan with Sydney University, which
totals $53,000, is now outstanding. There is a 9.5 percent workplace pension plan fee, which will
be the maximum payroll of the specified fund. Susanne have additional sources of profits, such
as the $10,000 of earnings from correctly used in the very same taxable year. Susanne has a
variety of sources of revenue in addition to her salary. In any case, the net total income, taxable
income, tax liability, college debt, Medicare levy, as well as Medicare levy must be determined
based on the information provided.
Rulings
The net taxable income, where specified more by Income Tax Act of 1997, contains income
derived from usual sources of revenue through adjusted as specified also by income tax act
(Nery, Sadler and White, 2019). Non-assessable taxes, also known as withholding taxes or non-
exempt revenue, is income that is not subject to the Internal Revenue Code. The income that can

be measured includes interest income through banks profitability, donations from workers that
reduce FBT, as well as other considerations. Before determining the tax liability, it is therefore
important to decide if the claimant is a resident. In which a resident citizen has no personal
medical benefits other than a Medicare fee, the reduction is also allowable, taking into
consideration the individual's and partner's circumstances, and can take into consideration a
deductible credit of 2% of tax liability in return for an insurance charge (Barkoczy and
Wilkinson, 2019). The income is derived by the taxation of payroll taxes. The gross amount
provided by that of the Medicare levy is equal to the number of the PAYG refused by the
contractor.
Application
The taxes are based at the moment the taxable income is filed, considering the MLS. If the
spouse and younger siblings do not have enough medical benefits, the Medicare tax monthly
charge of 1% of that same tax burden is required to be paid.
The refund threshold towards 2020-21 will be seen in light of the repayment of higher education
loans. The donation cap for 2020-21 is $46,620. In terms of superannuation payments, they will
either be included in the wages or paid separately. Susanne's most recent case study is
considered. Susanne has indeed been determined and must file her returns as a single Australian
resident for the years 2020-21. Susanne's net taxable salary is $90,000 after taxes, and she does
not have a corporate health insurance scheme. She already has a $53,000 non-student mortgage
for her studies at Radcliffe College. Susanne would also receive annual passive income of
$10,000 throughout the year as the employer pays a 9.5 percent superannuation over the income.
The following estimate has been performed: