HI6028 Taxation Law Assignment: Australian Taxation Law Analysis

This document presents a comprehensive solution to a Taxation Law assignment, focusing on Australian tax principles and relevant legislation. The assignment addresses key areas such as capital gains tax (CGT) on various assets like antiques, historical sculptures, and jewelry, analyzing their tax implications based on the Income Tax Assessment Act 1997. It also explores the taxation of income derived from personal exertion, using the case of Barbara and her book manuscript to determine whether her income is classified as ordinary income. Additionally, the assignment examines the tax implications of loans and gifts between family members, specifically the loan from Patrick to his son David for starting a new business. The analysis considers the absence of a formal contract and the potential for the loan to be treated as a gift for tax purposes, providing a detailed examination of the principles of taxation law.

Australian Taxation Law
Australian Taxation Law
Student Name
Institute Name
Date
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Australian Taxation Law
Table of Contents
Question 1...................................................................................................................................................2
Question 2...................................................................................................................................................4
Question A...............................................................................................................................................4
Question B...............................................................................................................................................5
Question 3...................................................................................................................................................6
References...................................................................................................................................................8
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Australian Taxation Law
Question 1
a) As per the Australian taxation office, in the given case, the sale of an antique capital asset is the
capital gain along with the capital gain tax. The collectable category also includes the antique
thing as per the guidelines of the Australian Taxation Office. As such, no particular or specific
definition connected to the antique piece is provided by the Income Tax Assessment Act 1997.
In here, the term antique means the importance and usage (Jacobs, 2017).
As in the given case, Helen had picked up the antique painting which has been bought by her
father in February 1985 during the sale in the given the year 2018. it would be applied as per the
Australian Taxation Office, and related to the asset that has been subsequently being purchased
on or prior 20 September 1985. It is considered to be not liable as per the taxation. The asset is
purchased in the year of February 1985. The income of Helen gained from the antique painting
shall be not liable as per the tax (Libby,2017)
b) As per the Australian taxation office, the guideline related to the sale would be connected to the
historical sculpture. It would be reviewed from the lens of the capital asset in the given capital
gain operating within the framework of capital gain tax. As per the Income Tax Assessment
Act, 1997 as per the Division 40, which examines how the investment is applied as per the
depreciable asset (Givoly, 2017).
It would be applied as per the prescribed rule in relation to the Australian taxation office and
would be judged from the perspective of the depreciation of counted 100 years.
The law would be reviewed from the lens of the historical sculpture as a part of the collectable,
which would be connected from personal use. From the Australian Taxation Office, the income
generated from the historical sculpture will be considered as ordinary income (Uzunidis 2017).
It is also as per the given provisions obliged per the Australian Taxation Office; It would be
related to the asset purchase on 20 September 1985 would not be liable as per the taxation rule.
The assets acquired during the year 1993 would be sold during the year 2018. The income thus
generated here is the $500 would come under the capital gain tax (Lubell, 2018).
c) As per the Australian taxation office, the sale of jewellery would be counted within the capital
asset and determined as the capital gain and as the capital gain tax applicable (Parker, 2015).
The jewellery can be more or less related to the collectable part of personal use.
Form The given rules as prescribed per the Australian Taxation Office, attributes to the income
generated and attained from the jewellery would come under the section of the ordinary income
within the division of the capital gain and can also be counted within the capital gain tax. From
the lens of the Australian Taxation Office, the asset as gained on 20 September 1985 would not
be liable under the taxation law. It would come under the asset of jewellery that would be
acquired in the year 1987 and then subsequently to be sold during the year 2018. The income
generated from it is $1400 comes under the capital gain tax.
d) In here the Australian taxation office would be examined from the given case study of the sale
of photographs, It would include under the capital asset and within the capital gain along with
the clause of capital gain tax. In here the analysis with the given factual fact of the case should
examine how the photographs would also be part of the collectable items that would be
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Australian Taxation Law
interpreted as the personal use. In here the rules of the Australian Taxation Office, along with
the supporting income counted as photographs in relation to the ordinary income within the
heading of the capital gain and capital gain tax which has been levied upon.
In there the given laws and the provisions of the Australian Taxation Office applies to the asset,
It would be purchased prior to the 20 September 1985 along with the ability to be able to relate
and would not be liable as per the taxation law that would be covered. In here the asset of
jewellery has been bought in the year 1987 subsequently been sold in 2018. Therefore the
income generated is, i.e. $4530 for the given capital gain tax (Parajka, 2016).
Question 2
Question A
In here, the income of the Barbara would be able to attain per the payment of book to be attained within
the framework of the copyright worth of $13,400 (Schaltegger, 2017). TO understand how the
manuscript worth would be examined is attained per the given $4,350 interview manuscript in relation
to the given connection of $3,200. it would be counted to be directly or indirectly to the skills and
knowledge of Barbara. It would counted per the ordinary taxed income.
As per the Australian taxation office, it would be obliged under the framework of incomes that can be
generated or produced for the given person, skill, efforts along with the given knowledge helps to
evaluate the personal income or income and as per the personal exertion. It would be on the basis of
the production of personal income that can relate to the income derived from the business, commerce,
trade or profession.
From the lens of the Income Tax Assessment Act 1936 as per the section 6 it would be attainment of
the income earned fro the lens of the individual from his skills along with the knowledge that can
examine the income with the framework of the personal exertion or personal income along to the
ordinary income both, It can relate to tax according to the given relation of provisions of the taxation
office as per Australia. It would be as per the Court to connect with the Tupicoff v/s FCT, having an
individual insurance agent that would connect to be the taxpayer and it would be examined per the
receiving commission having a sale of the policies. It would be attributed to the business that has been
divided in connection to the member of the family that has been actually to be hired as the employee
with the given trust along with provided salary. It would be divided per the net profit of the other
family members.
It is dependent on the case having the main consideration to be having no knowledge along with the
skill related to the subject; It would be an inability to write a book on the subject matter (Single, 2017).
This also highlights how the layman cannot write a book in relation to the given book who does not
possess and would be related to the knowledge and specialization. It would be examined per the given
knowledge of the relevant field and would be able to write a book in the relation of the subject. In here
the income Barbara would be able to receive the book with the income of the personal exertion.
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Australian Taxation Law
Question B
Here the Australian taxation office would be obliged per the given provision to be able to include the
incomes as a part of the produced attained from the personal, skill along with the ability to have the
require efforts and knowledge to the given person deemed to be as per the personal income or income
having a personal exertion. It would include the production of personal income that would be related to
the income from any business along with the attainment of the commerce, trade or profession. It would
include the examples of personal incomes such as of the various Engineers, Construction Workers
along with the given IT Consultants, Lawyers, and with the Medical Practitioners, etc. With the given
relation to the noted part of the income in connection with the personal exertion along with the relation
with the other income to the individual given drawn salary or employed for the organization.
It would be the attainment of the facts of the case related to the Barbara that would be having the
sufficient knowledge in relation to the subject economics along with the rationality to include how
there can be an ability with the write a book in relation o the prior writing experience. It is also related
to it at all Barbara can also have the written this book, and it would be in relation to the written the
books as per the given knowledge along with the given idea of the company As per the Eco Books Ltd
it would have a no role to play and to acknowledge how there can be a key relationship that can be
attributed to the having no knowledge along with the derived skill related to the subject, Ut would be
connected to the book addressed to the subject matter (Sitorus, 2016). As per the given layman
connected to the written book with the relation of the subject matter that would not be able to possess
any knowledge along with the key specialization. It would be able to include how the field that would
be relayed to one cannot be interpreted to the write a book to be able to the subject in connection with
the spare time that would be based on the sort of contract as per the other firm. It is to be implied per
the given income generated and attainment of the sale of books which would be directly or indirectly
connected to the personal skills along with the referred knowledge that would be taxed in relation to
accounting as income with the personal exertion and attributes to the ordinary income.
As per the ITAA 1997 obliged to the section 6-5 it needs to be able to provide the income for the given
relation of sort of business activity attributed to the given ordinary income. In relation to the facts of
the case obliged to the Evans v/s FCT, to the given business activity punted that would be obliged to
provide to the generated incomes, and it would help to be able to connect generate per the given profits.
It would help the taxation department for the given income to be able to associate with the aforesaid
manner as well (Tregidga, 2017).
Question 3
It would be factually enabled and would be examined per the case, the relation of the Patrick would be
able to help to absorb the sum of $52,000 to the given son David that can start the new business with a
promise which can keep the David to be able to repay with the given amount during the given duration
of five years. The Patrick would not be expecting interest that would help to include the loan amount.
In here the David also needs to be annoying pay the aforesaid amount having a 5% interest to the given
principal amount. It would not be under the no formal contract in relation to the parties with the amount
related to the David with the Patrick having a gift for income tax calculation to the Patrick.
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Australian Taxation Law
It is also enabled to be part of the Patrick which can help to connect with the relation to the adequate
evidence with the given income that would also include the gift as the Australian taxation office and
would examine as per the proof (Uzunidis, 2019). It would help to determine the income which has not
been duly done and would consider the repayment of a loan, and it would also help to relate to the gift
from his son. As per the given duty of the taxpayer, this would help to relate per the gift income of the
given repayment of a loan. Form the eyes of the Australian taxation office to be able to provide per the
guidelines of the gifts which would be including the close friends, family members along with the
relatives which would not be entitled per the given gift amount that would not be a big amount.
Interpreted to the given leading case laws with the below given;
FC of T v. Coppleson
FC of T v. McPhail
IR Comr v. Duberstein
With the given case there is a related to the given complex along with the key relationships that would
be significant and be related to the difficult task that can address how the gift of the Patrick can be
taken from the David (Zeff, 2016). The relation of the Patrick would also signify how there can be
examined as the adequate evidence which would connect to income that can be connected to the
Australian taxation office with the given relation to the proof with regard. It is related to the income
that can connect to the repayment of the loan, with the gift from his son. Connected to the cases, with
the given connection to the duty of the taxpayer that would be able to apply to the given ample of
evidence which would be connected to the gift income rather with the attribution of the repayment of a
loan. This per the given Australian taxation office would be related to the gifts having to be received
the close friends along with the family members and relatives that would be connected to the tax until
enabled as per the unless the gift amount with the key connection to be related to the huge amount.
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Australian Taxation Law
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