Taxation Assignment - Case Studies and Tax Calculation Analysis

This assignment provides a detailed analysis of taxation, including calculations and case studies. The first case study focuses on employment termination, calculating the tax payable on a termination payment, considering the tax-free component and the taxable component, and the application of tax rates. The second case study involves calculating taxable income, including assessable income from salary and dividends, allowable deductions, and the calculation of tax payable, considering the Medicare levy and franking credits. The assignment also includes a reference list of sources used in the analysis. This assignment is designed to help students understand the practical application of tax laws and calculations in various financial scenarios.

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

1TAXATION
Table of Contents
Case One..........................................................................................................................................1
Case Two.........................................................................................................................................2
Reference.........................................................................................................................................3

2TAXATION
Case One
Tax payable on employment termination Payment
Particulars Amount
Total Termination Payment $740,000
Tax free component of the payment (per July 1983) $51,980
Taxable Component $688,020
Tax on Taxable component
15% including Medicare levy on the first 175000 $28,875
45% including Medicare levy on the first 175000 $238,554
Tax Payable on Termination amount $267,429
Notes:
The employment termination payment prior to July 1983 is tax-free component. The ETP
limit for the year is $175000.
Case Two
Statement showing calculation of Taxable income
Particulars Amount Amount
Assessable Income
Salary $92,000.00
Dividend $3,820.00
Franking credit $1,637.00
Dividend (gross) $5,457.00
Total Assessable income (A) $97,457.00
Allowable Deduction
Deduction for earning salary $5,780.00
Taxable Income $91,677.00
Tax Payable (17547+(91677-80000)X37%) $21,867.49
Medicare Levy $1,375.16
Total Tax payable $23,242.65
Franking credit $1,637.00
PAYG $29,985.02

3TAXATION
Personal Tax offset $2,355.00
Total $33,977.02
Net Tax Payable /( Refundable) -$10,734.38

4TAXATION
Reference
Barkoczy, S., 2016. Foundations of Taxation Law 2016. OUP Catalogue.
Cao, L., Hosking, A., Kouparitsas, M., Mullaly, D., Rimmer, X., Shi, Q., Stark, W. and Wende,
S., 2015. Understanding the economy-wide efficiency and incidence of major Australian
taxes. Treasury WP, 1.

5TAXATION