We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Australian Income Tax Law - Essay Example

Comments (0)
Summary
According to Adam Smith statement in his “Wealth of Nations”, the subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state…
Download full paper
GRAB THE BEST PAPER

Extract of sample
Australian Income Tax Law

Download file to see previous pages... The expense of government to the individuals of a great nation is like the expense of management to the joint tenants of a great estate, who are all obliged to contribute in proportion to their respective interests in the estate. In the observation or neglect of this maxim consists what is called the equality or inequality of taxation. Every tax, it must be observed once for all, which falls finally upon one only of the three sorts of revenue above mentioned, is necessarily unequal in so far as it does not affect the other two.
Looking at income tax rates methodology, we see that a taxpayer's income is taxed progressively. Broadly, this means that as you earn more income your average tax rate rises. And it’s really fair! Progressive taxation means that higher income earners pay more tax than lower income earners. The Government defined a maximum sum, which is not taxed –$6000. Let’s imagine, that your income is equal to X. Then if your income lays between you’ll pay 17% from (X-$6,000) sum. If your income is , you must pay more - $2,652 (according to previous rule) and 30% from (X-$21,600) sum, etc. This is achieved by taxing a range of income brackets as a set percentage or cents in the dollar. These income brackets are called tax brackets. The following tables detail the tax brackets of our progressive tax system for the financial years ending 30 June 2005 and 30 June 2006. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Income Tax and Corporation Tax
The paper intends to examine and present importance of direct and indirect taxes and its implications; revenue generated by tax against total government spending; progressivity of income and corporation tax in UK; responsibility of notification of income and payment of tax for income tax and corporation tax separately.
9 Pages(2250 words)Essay
Principles of tax income law
Other than this explanation, there is no concrete definition provided for ordinary income. In order to define income as ordinary in the Australian legal system, help is often taken from Scott v Commissioner of Taxation2. According to the judgement handed down by Sir Fredrick Jordan in the subject case, receipts that must be treated as ordinary income must follow “ordinary concepts and usages of mankind”.
11 Pages(2750 words)Essay
Australian Company Law
Partnership business can be defined as an association between two or more persons with a shared objective of making a profit. Partnership business is not a separate legal entity and partners are personally liable for the debts and obligations of the business.
6 Pages(1500 words)Essay
Income Tax (IAS12)
The argument presented is that the standards set by IAS 12 are too hard to apply or even understand. In the plight of these criticisms, two accounting standards boards, UK’s (ASB) and Germany’s (GASB) opted to conduct a proactive project plan aimed at fundamentally reviewing the standards set by IAS 12 prove hard to solve through piecemeal amendment.
6 Pages(1500 words)Essay
Accounting for Income Tax
In situations where transactions are accounted for outside profits or loss, this standard has offered specific provisions. In case of the transactions that are recognised directly in equity, any associated tax implications are also recognised directly in equity, while those that are recognised in comprehensive income have their associated tax implications recognised in comprehensive income.
6 Pages(1500 words)Essay
Income taxition law
Capital gains result from selling assets such as real estates and shares. Business goodwill also results into capital gains. There is no distinction between income on revenue account, which is referred to as business income and income on capital account, which is referred to as capital income.
12 Pages(3000 words)Essay
Taxation Law: Australian Foreign Income Laws
No matter how the government would like to ease off the tax burden on individuals and firms, the government must also be considerate of the fact that it does not want to lose its revenues as it needs these revenues to finance the local infrastructure.
7 Pages(1750 words)Essay
Income tax accounting Essay
Interest paid on money to buy or carry investment property that produces taxable income is also deductible on Schedule A, but under section 163(d) the deduction cannot exceed the net investment income. Commissions and other costs of acquiring or disposing of securities are not deductible but must be used to figure gain or loss upon disposition of the securities.
2 Pages(500 words)Essay
Income tax accounting
For tax year 2005, the maximum amount of EITC a qualifying worker with one child can receive is $2,662. For two or more children under one's care, the maximum amount is $4,400. For workers with no children, the maximum amount of EITC is only $399 (Tax Credit Resources, n.d.).
2 Pages(500 words)Essay
Tax Law
Gross income illustrates the total income earned by individuals; for example, basic salary plus allowances. Several tax returns deductions are subtracted from gross income to form the AGI, for example, medical deductions. Taxable income is calculated by subtracting itemized deductions and also personal exemptions, from the adjusted gross income.
3 Pages(750 words)Essay
Let us find you another Essay on topic Australian Income Tax Law for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us