Nobody downloaded yet

Principles of Taxation Law - Case Study Example

Comments (0) Cite this document
Summary
Goods and Services Tax similar to the Value added Tax (VAT) prevalent in European jurisdictions is an indirect broad based consumption tax. "It applies not just to goods and services as commonly understood but also to real estate and the creation of rights…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
Principles of Taxation Law
Read TextPreview

Extract of sample "Principles of Taxation Law"

Download file to see previous pages A supply will not be regarded as a 'taxable supply' to the extent that it is a 'GST-Free' supply or an 'input taxed' supply. The GST payable is calculated at 10 percent of the value of the consideration that entity receives for making the supply (excluding GST). Entities registered for GST are entitled to claim input tax credits for the GST included in the costs of various goods and services that the business has acquired for its activities. "However where an acquisition relates to input taxed supplies, the registered entity may be restricted in its ability to claim input tax credits for that acquisition depending on the purpose of the acquisition and the supplies to which it relates"3.
Depending on the size of the turnover the entities registered for GST are subjected to certain reporting obligations. The entities are required to prepare and lodge with the Australian Tax Office (ATO) GST returns on a monthly, quarterly or annual basis. The entities whose turnover is more than A$ 20 million per annum are required to file the GST returns on a monthly basis. ...
On the contrary if the input tax on the acquisition is more than the amount the entity is liable to pay then the entity is entitled for a refund from the ATO.
Tax Credits on Land Purchase:
As per the GST rules if the land is purchased after 30th June 2000, then the input tax credit on the land purchased can be claimed. However this claim for tax credit is subject to the condition that the sale to the entity must be a taxable supply and was not subjected to any margin scheme. In this case since the GST of 10 percent has been paid on the land cost while purchasing the trust can claim tax credit for the GST amount paid on the land cost.
In respect of other capital items purchased like kitchen outfit, tables and chairs and cutleries the trust can claim the input tax credit of any GST included in the items purchased. This also covers the GST included in the services acquired after paying GST. The trust should have invoices for all the purchases it has made in order to claim the input tax credits. "Some supplies of goods and services will be GST-free, for example basic food, exports and some health services. This means that GST will not be included in the price of these goods and services."4

Calculation of Taxable Income:
The calculation of the taxable income of the trust is shown below:
Description
Amount A$
Sales
165,000
Add: Closing Stock
8,000
Total Revenue
173,000
Less : Expenses

Purchases
33,000
Wages
40,000
Superannuation
3,600
Administrations Costs
8,000
Interest
12,000
Demolition Costs
5,500
Total Expenses
102,100
Net Income
62,900

Income Adjusted for Tax Purposes:

Gross Income as per Statement A$ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Principles of Taxation Law Case Study Example | Topics and Well Written Essays - 1750 words”, n.d.)
Principles of Taxation Law Case Study Example | Topics and Well Written Essays - 1750 words. Retrieved from https://studentshare.org/miscellaneous/1529449-principles-of-taxation-law
(Principles of Taxation Law Case Study Example | Topics and Well Written Essays - 1750 Words)
Principles of Taxation Law Case Study Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/miscellaneous/1529449-principles-of-taxation-law.
“Principles of Taxation Law Case Study Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/miscellaneous/1529449-principles-of-taxation-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Principles of Taxation Law

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

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] Woellner, R. H....
8 Pages(2000 words)Essay

Taxation Principles and Concepts (Taxation)

...., 2007, Economics: It’s Concepts & Principles (W/ Agrarian Reform & Taxation)' 2007, Rex Bookstore, Inc., Philippines. Gupta, S., 2003, State and Local Taxation: Principles and Planning, J. Ross Pub., Boca Raton, FL. Helminen, M., 2011, EU Tax Law: Direct Taxation, IBFD, Amsterdam. Kobetsky, M., 2011, International Taxation of Permanent Establishments: Principles and Policy, Cambridge University Press, Cambridge. Rolfe, T., 2006, Financial Accounting and Tax Principles 2007, Elsevier, Amsterdam. Shome, P., 1995, Tax Policy Handbook (EPUB), International Monetary Fund, Washington D.C.... ? Taxation Principles and Concepts (Taxation) By Taxation Principles and...
8 Pages(2000 words)Coursework

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 honestly. But...
20 Pages(5000 words)Essay

Taxation Law Practice

...TAXATION LAW PRACTICE Introduction In order to properly determine the taxable income of Mr. George Bore, it is necessary to establish the allowable deductions and taxation laws applicable for Mr. Bore. Discussion Taxation law means a law of the commonwealth or of a territory imposing a tax or otherwise dealing with Australian tax. Tax includes income, excise and other taxation devices. Income tax may either be corporate or personal. Commercial law, trade, intellectual property, and others deal with the transactions giving rise to tax. Business organizations focus upon the entities...
9 Pages(2250 words)Essay

Assignment taxation law

... authority (Jonathan & Bowen, 2008). References Cordes, J. J. (2005). The encyclopedia of taxation & tax policy. Washington, D.C: Urban Institute Press. Erdős, E. (2011). The legal sources and steps of the European tax harmonization. Juridical Current, 14(2), 40-54. Jonathan, H., & Bowen, B. (2008). The fundamental principles of taxation in the light of modern developments (Book). Harvard Law Review, 35(1), 150. Schanz, D., & Schanz, S. (2011). Business taxation and financial decisions. Heidelberg: Springer.... Taxation Law Taxation Law Tax law refers to laws that govern the collection of taxes by the central government to enable it...
2 Pages(500 words)Assignment

This is for principles of Law and taxation

...Principles of Law and Taxation in Azerbaijan Introduction The country of Azerbaijan is located on the western shore of the Caspian Sea. The region on which the country gets located is mountainous with only 7% of it being arable land. The main source of water for the country is the Kura River Valley. The country has an established legal system where the principle of the rule of law gets exercised. The country further has an established taxation system. This paper will look at the principles of law and taxation in this country and how they get applied in the day-to-day running of the...
3 Pages(750 words)Term Paper

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

Pharmacology Population

4 Pages(1000 words)Assignment
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 Case Study on topic Principles of Taxation Law for FREE!

Contact Us