Introduction

The valuation of the personal assets, its related transaction, the ceased real estate’s licenses granted and functioning of the duties over the regional areas are assessed by the government. This assessment of the properties and duties of an individual is accounted for the taxation under the government taxation rules and regulation. The tax is imposed on the individual for the purpose of extracting funds from the income and using it for providing service to the state. This report is focused on the taxation imposed by the Australian government and the rate of tax paid by the individuals or Australian company. By the help of given case study of Australian court, the tax payable is ascertained for RIP Pty Ltd in the reported study.

PART A

A. Referring to the Court Case Study discussing the Facts, Issues, and Conclusion of the case

According to Millar (2014, p.24), the case study in Arthur Murray (NSW) Pty Ltd v FCT (1965) 114 CLR 314, 

Facts- The fact released in this court case is regarding the school of dancing who received the fees in advance and has to hold the fees in the suspense account utile the service is rendered to the students. The motive was shown for delaying the tax payment in providing the dancing lesson to the members in the coming year (ato.gov.au, 2017). The facts showed that the taxpayers will not be done until the service is rendered, after that the fees will be transferred to revenue account. The norms of refunding the fees have not been followed which created confusion in the mind of the tax consultants. 

1) Advising RIP Pty Ltd for the general reception of Income

2) Advising RIP Pty Ltd when fees are derived from the various activities and funeral services

The income of the taxpayer basically depends on the debt which is enforceable in concern of the company or individual who is operating the business. According to Aitchison (2016, p.12), accounting principle of Australia, the annual income turnover above $2 million annually can access their income as respect base of cash. This criterion is applied to every working professionals of Australia either it is the engineer, accountant, doctor, or small and large sector business related person. The rules of tax payment on income are incorporated under Income Tax assessment Act of 1997 under section 6.

The dividend payable Moreover, provision for ordinary income as well as statutory income are also provided on the cash basis to the professionals having an annual turnover income of $2 million under section 6-5 and section 6-10 of Income Tax Assessment Act 1997 (Stewart, 2017, p.40).