Taxation Law (HA3042) Tutorial Questions Assignment 2, June 2020

This assignment solution addresses several tutorial questions related to Taxation Law. Question 1 explores invalid tax offsets under different scenarios, calculating the offset amount based on John and Paul's income. Question 2 examines voluntary deductions, optional repayments, and the implications of fringe benefit tax. Question 3 delves into the Australian Business Number (ABN) requirements for businesses and the record-keeping obligations of partnerships. Question 4 focuses on tax concessions, non-concessional contributions, and the taxation of superannuation funds. Finally, Question 5 analyzes GST implications for landlords and tenants, and the application of GST to goods and services supplies, referencing the CGST Act.

Taxation Law

Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................3
Question 4........................................................................................................................................4
Question 5........................................................................................................................................5
REFERENCES................................................................................................................................6

Question 1
Scenario 1:
In this case the total of John’s invalid tax offset is $ 116000 as the $4000 will be totally
exempted from tax as Paul is disable person and any income to these individual are totally free
for tax deductions.
Scenario 2:
When the adjustable income of John is $63000 and the adjustable income of Paul is $900 and the
total taxable income of John is $120000 than invalid tax offset for the respective financial year
will be $56,100 (Invalid and invalid carer, 2019).
Scenario 3:
In case if Paul is sick for the period and not receiving any income than only income of John will
be consider while calculating the invalid tax offset. The total taxable income is $120000 and the
adjusted taxable income is $41000 so the total offset amount for the period will be $79000.
Question 2
In relation to voluntary deductions, optional repayments make growing salary packaging.
Oliver still has to consider making an enforced interest payment for his renaming income is over
the minimum return cut-off for a year of income. This is part of your evaluation notification and
Oliver enters a pension contribution configuration, which will provide with a marginal benefit.
Already when users join into this agreement, then he could also receive financial advice. Any
voluntary reimbursement by Oliver from employer shall not be deductible from tax. He can be
entitled to assert a tax exemption if the company accepts discretionary contributions on the
behalf. The company can also reimburse the interest payments also for Fringe Profit Tax. Such a
payment is not a correlating data to contribute to making surrender of salary when guide
companies shall pay to a 3rd person from Oliver earnings (for instance to pay monthly premium,
credit reimbursement, pension contributions or conditional card repayment). Such fees by third
parties are provided to the after-tax or total income numbers. Division 7A is applicable to certain
payments received to a listed company or identify of a private firm by board members where
even the firm at current situation has a right to a net earnings including its trust property, as well
as the amount owed is not compensated by a particular date. Once Oliver files his tax return or
foreign profits, an automatic rebate or overseas fee may be provided in a confirmation

declaration until his optional redemption is applied to his account. At the moment the loan is
charged to the company in a regular loan, or at some stage, in consideration to the lender or his
wife, a loan is provided to an individual. If a corporation makes one or even more mortgages
during an income year to an investor or its affiliate, it can require the shareholder or affiliate to
create a conglomerated loan.
Question 3
Details of companies and organizations when registered for an Australian business number
(ABN) are stored on the Australian Business Register. The both parties David and Emma are
required to receive certain details regarding their entity under the A New Tax System (Australian
Business Number). To order to modify details kept to the ABR about their business, can both use
the client data given on the tax return. That can involve cancelling the ABN because the business
no longer has the ability to file with the ABR. The steps include all the agreements cross -
currency and between David and Emma in addition, the agreements to be structured for a cash
currency value comparison in Australian currency (Input tax credits, 2019). In addition, Forex
benefits and expenses of a personal or domestic character or of excluded or non-exempt profits
are not responsible under Forex controls. Records that contain details of all taxation vote or
estimates or calculations made by people and, in the event of a guesstimate, perseverance or
calculation, details showing the justification on which the estimates, determinations or
calculations have been made as well as the technique by which they have been made by these
parties. The partnership must typically keep all the corresponding documents for five years just
after exchanges or money transfers with which they contribute, whichever one is later, David and
Emma have been made or obtained. Information on the address and phone number of the
consideration of the partnership bank, its bank and branch, date over which the service is offered
and name of individuals permitted to issue the address and schedule of such authorization.
Question 4
Tax concessions or non-concessional Anna contributions are indeed the surplus-annulation
contributions. Tax concessions contributions (occasionally alluded to as pre-tax contributions)
are expenditures that are subject to, or got a tax deduction from Anna. Tax concessions
accomplishments have included donations of the Supreme Pension Guarantee (SP), pension
contributions, those certain tax deductions and personal depreciation efforts. The fund taxes not

costing promises is although taxable elements do not alter the taxable income by the
Superannuation Fund, Anna may contribute to the calculation of the tax on super-fund
withdrawal symptoms. The superannuation fund costs, including such management, savings and
health premiums are expenditures from the fund’s profits and are allowable. The policy shall
therefore be deducible from the net profit on life insurance contributions charged by the
Company; the same amount will not be tax exempt if compensated personally by Anna. Non-
concessional donations (or 'un-deducated' donations or 'after-tax') are expenditures on what a
reduction of tax is not open to all. In general, non-concessional investments are not taxed in the
fund. If all fund of Anna are excluded beyond this threshold, therefore the total earnings of the
company are exempt from taxes (Tax on superannuation fund, 2019). In which a fund splits she
might be among non-retirement and retirement phases, this must be an accountant to insure the
percentage of the explicitly excluded fund revenues (without fully separating pension assets).
Question 5
When the landlord is licensed then is responsible for paying GST because it is no longer
licensed then the occupant is responsible for paying GST. Indeed GST valid in this case and is
not relevant in this case because existing homes for recreational purposes is used instead and out
of the GST. As this tax is mainly applied goods and services supplies as per the Section 7 of the
Central Goods and Services Tax Act 2017 ("CGST Act") has been carefully defined to determine
the parameters including the term "supplies." Throughout the case presented to of DK pty Ltd to
the CGST Act, that being said, exchanges are treated as materials even if they are not taken into
account, including supplies among associated persons when these shipments are decided to make
during or after a business. Acquisitions of future M&A operations at an early point could be too
far from any planned production taxable financial arrangement for production tax incentives to
be rejected in respect to the eventual expected supply (Partnership tax return, 2019). Since the
consolidation is so far removed from every monthly employee related transactions, the assertion
of input tax credits could be based on the way in which insight welfare benefits are assumed on
overhead and of DK pty Ltd. In other words, acquisitions could be treated as all of the business
activities instead of any specific input tax credit and therefore the input tax credits should be
equally distributed. However, exchanges among respective company and lawyer are treated as
provisions in matters submitted to in Schedule including its CGST Act, although considerations
are not present, including provisions between persons belonging since these equipment or

houses are made during or during operation. If the market price of the asset or service providers
of the same kind and quality is not accessible, only the significance of the supply shall be used. If
both of these are not available, the value must be considered as 110 % of the costs of
manufacturing the products, or even the cost of purchasing them. But if it is not available,
interest can still be measured using fair methods, in compliance with evaluation rules standards
including general requirements.

REFERENCES
Books and Journals
Partnership tax return. 2019. [Online] Available Through:
<https://www.ato.gov.au/Forms/Partnership-tax-return-instructions-2019/?
anchor=Generalinformation#Generalinformation>
Tax on superannuation fund. 2019. [Online] Available Through:
<https://www.ato.gov.au/Forms/Fund-income-tax-return-instructions-2019/?
anchor=SectionCDeductions#SectionCDeductions>
Input tax credits. 2019. [Online] Available Through:
< https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/Business-asset-
transactions/Mergers-and-acquisitions---claiming-input-tax-credits/?page=5>.
Invalid and invalid carer. 2019. [Online] Available Through:
< https://www.ato.gov.au/Individuals/myTax/2017/Tax-offsets/Invalid-and-invalid-carer/ >