Nobody downloaded yet

Australia taxation law - Essay Example

Comments (0) Cite this document
Summary
This case study consists of preparation of tax lodgings for Andrew and Mary Finlay (with 2 student deductions for children Jason and Angela). The study is an in depth look at how to prepare this family's tax lodging requirements. The resource used to complete these requirements is the Australian Taxation Office, Australian Government, website (www.ato.gov.au)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.4% of users find it useful
Australia taxation law
Read TextPreview

Extract of sample "Australia taxation law"

Download file to see previous pages The first task identified was the determination of whether, for tax purposes, the Finlays are considered residents of Australia. The determination was made that the Finlays were considered residents based upon the residency test. According to Australian Tax Law the Finlays are considered residents because they were in Australia for 6 months or more during the 2006/2007 tax year. They also meet residency requirements because they met one or more of the three statutory residency tests. They are considered residents because they maintain a residence in Australia, have resided in Australia for 6 months during the tax year, and they contribute to the superannuation retirement fund.
The biggest question to answer about residency and foreign income is what is taxable and what is not taxable. It has already been determined that the Finlays meet residency requirements for tax purposes. Although the tax forms ask for foreign income and foreign taxes paid on those earnings, the tax forms do not explain why. The first determination was that the income was earned in a country that has already taxed the income. If the foreign income was earned but not taxed it would be subject to taxation by the Australian Government. ...
d States and Australia was created for "the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income" (Australian Taxation Office website). This protocol covers all aspects of income earned in the United States. Most specifically, relating to this case study, income earned within the United States is taxed by the United States. Any income not taxed is considered taxable income in Australia and residents of Australia are subject to taxation on that income earned. It is very important for the individual to report foreign income and whether or not it was taxed. All records relating to the income and taxes paid should be kept as proof of income earned and taxes paid. Taxation also applies to dividends earned, interest earned, royalties, and capital gains earned in the United States. In this case study Andrew's earnings were taxed but dividends, capital gains, and interest earned in the United States were not taxed so they are subject to taxation in Australia.
Other instance where income may not have been taxed by the United States include the following:
1) the income is less than the amount where taxation begins
2) the income falls into an exempt category in the foreign country
3) a memorandum of understanding exists
4) The income consists of supplements paid by the Australian Staffing Assistance Scheme
5) The foreign country levies a tax but does not have a system in place to collect those taxes


TaxPack and Forms.
This case study was completed using the Australian Taxation Office's "TaxPack" retrievable from their website at www.ato.gov.au. The TaxPack for individuals, supplement section, and Business and professional items schedule for individuals 2007. In addition, the rental property worksheet was used to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Australia taxation law Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Australia taxation law Essay Example | Topics and Well Written Essays - 2250 words. Retrieved from https://studentshare.org/miscellaneous/1525673-australia-taxation-law
(Australia Taxation Law Essay Example | Topics and Well Written Essays - 2250 Words)
Australia Taxation Law Essay Example | Topics and Well Written Essays - 2250 Words. https://studentshare.org/miscellaneous/1525673-australia-taxation-law.
“Australia Taxation Law Essay Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.org/miscellaneous/1525673-australia-taxation-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Australia taxation law

Included in the description

4 Pages(1000 words)Research Paper

Australian taxation law

...? [Manager] 28 May AUSTRALIAN TAXATION LAW The fringe benefits tax liability of Chatswood Pty Ltd for the year ended 31 March 2011, shall be based on the ‘Higher gross-up formula (type 1), which means that the higher gross-up formula was introduced to avoid allowing employers the benefit of GST credits for goods and services purchased for the private use of employees. The higher gross-up rate effectively recovers the GST credit you can obtain in providing a fringe benefit. The following formula is used to calculate the higher gross-up rate:’1. Type 1 FBT rate + GST rate aggregate fringe x ______________________________ benefits amount (1 – FBT rate) ? (1+GST rate) ? FBT rate Hence, the following benefits...
8 Pages(2000 words)Assignment

Assessment for Taxation Law

...?Assessment for Taxation Law Introduction This case involves two companies, which had entered into a contract, which was later terminated and damagesof $400,000 paid outside court litigation, as a way of compensation. The amount paid to Nutra Tech Pty Ltd is paid in lump sum. Generally, lump sum amounts are not subjected to income tax assessment, because they are considered not income in nature. Furthermore, such amounts are not subjected to capital gain tax if they fall under certain class which is exempted. Nonetheless, lump sum amount is taxable if its purpose is to reimburse not more than a loss of income. A lump sum is subjected to tax on the extent to which it is quantifiable and identifiable as...
4 Pages(1000 words)Assignment

Law of Business Taxation

...forms. The ITTOAI 2005 helps companies or enterprises gain a more straightforward process of filing their incomes by simplifying deductibles and what may be considered taxable activities as well as allowable expenses that can be deducted. References: ACCA. 2012. Income from Property. Technical Factsheet 139. American Leaf Blending Co. SDN BHD v Director-General of Inland Revenue (1979) (AC676). James, Malcolm. 2011. Taxation of Small Businesses. Spiramus Press. James Waldie & Sons v IRC (1919) (12 TC 113) Rhodesia Railways Ltd v Collector of Tax of the Bechuanaland Protectorate (1933) (AC 368) Highland Railway Co v Balderston (1889) (2 TC 485) Law Shipping Co Ltd v IRC (1923) (12 TC 671) Copeman v...
5 Pages(1250 words)Essay

Taxation law

...University. (1998). Journal of Australian taxation. North Ryde, N.S.W: CCH Australia [and] Monash University, Faculty of Business and Economics, Dept. of Business Law and Taxation. Humanservices.gov.au (2013). Income. [online] Retrieved from: http://www.humanservices.gov.au/customer/enablers/income [Accessed: 25 Sep 2013]. Mason, T. J. (2010). Income tax law: Principles and applications. Frenchs Forest, N.S.W: Pearson Australia. Sydney.edu.au (2013). LEC - Subject Pages - Taxation - Useful Links. [online] Retrieved from: http://sydney.edu.au/lec/subjects/taxation/links.htm [Accessed: 25 Sep 2013]...
8 Pages(2000 words)Essay

Taxation Law

...legislation imposing taxes and excise (other than customs duty). It also works with appropriate departments on policy matters relating to tax and excise. The ATO has the responsibility for administering a range of tax and superannuation legislation is vested by Parliament in the Commissioner of Taxation. The Commissioner's authority to administer each levy is written into the law relating to that levy, as are his general responsibilities, discretionary powers and rights (The Commissioner of Taxation, (n.d.), accessed 25.10.05). In Australia, the Tax Office generally asks the taxpayers to co-operate with it voluntarily and to disclose full information completely and...
20 Pages(5000 words)Essay

Taxation Law Practice

...on the circumstances. At the point of contribution to a fund, on speculation income and at the time benefits are received. In some conditions, no tax is applicable at all. The compulsory nature of Australian Superannuation means that it is sometimes regarded as being similar to social security taxes charged in other nations. This is more frequently the case when comparisons are being made between the tax burdens of respective nations. ADMINISTRATION TAXES Taxation in Australia is administered at the federal level by the Australian Taxation Office (ATO). Federal GST revenue is theoretically given to the states under a distribution formula known by the Commonwealth Grants Commission (ATO,...
9 Pages(2250 words)Essay

Principles of Taxation Law

... 'Input Tax Credits for Businesses' http://www.ato.gov.au/content/downloads/nat3019.pdf Commonwealth Consolidated Acts 'Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998 - Schedule 2F' http://www.austlii.edu.au/au/legis/cth/consol_act/tlalaoda1998583/sch2f.html Elisabeth Loew and Clayton Utz 'Australia Tax Desk Book' http://www.lexmundi.com/images/lexmundi/PDF/IntlTax/Australia_2006.pdf Taxation Ruling T/R 97/25.... of trusts the rules for the carry forward of business losses are complex in nature and the Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998 governs the provisions relating to the carry forward and set off of business losses by the business trusts. Under...
7 Pages(1750 words)Case Study

Photosynthesis

2 Pages(500 words)Essay

Taxation Law

...: i) The servant approves that in consideration for wages, salaries or other remuneration, he will deliver his work and skill in the performance and enactment of some service for his master. ii) He agrees explicitly or impliedly that, in the performance, some service he will be subject to the others control and directives in a sufficient degree to make the other master. iii) The other provisions of the contract are consistent with being a contract of service. The aforementioned factors were created by common law courts to determine if a person was employed or self-employed. There are other numerous factors that exist and that can be used. They include a) Holidays pay. b) Payment when absent for illness. c) Supply of...
8 Pages(2000 words)Essay
sponsored ads
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.

Let us find you another Essay on topic Australia taxation law for FREE!

Contact Us