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    Taxtation Law of Australia

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    Taxtation Law of Australia


     Question 1

    a)  According to the provisions of Income Tax Assessment Act 1997 TR 2018/4 covers the income tax over the life depreciating assets. It would helps in assessing the effective calculation of tax for individuals.  It has been analysed that depreciation value lower the material value of the assets (Legislation.gov.au, 2017). 

    b) The foreign income tax paid can get the leverage of dividends and distribution of offset.  A resident taxpayer may get exempted of foreign offset, if he pays the foreign hybrid or CFC interest (Legislation.gov.au, 2017). In division 80, the rules and regulation for the foreign company regarding purchasing and selling of the assets has been provide in the provision of Income Tax Assessment Act 1997

    c)  The below table show the tax slab for a resident in Australia (Legislation.gov.au, 2017).  Moreover, it provides the rate tax focusing on the taxable income. 

     
    d) The Capital Gain Tax events are applied in real east, share, units or similar events (Ato.gov.au, 2018).  However it exempted the personal residence of any individuals or car.  It also includes assets acquired before 20th September 1985. 

    e) CGT events mean the transaction of capital gain and loss for any business (Legislation.gov.au, 2017).  It includes the sale of share or any proceeding directly related with capital receipt. 

    f) In the step 1 the taxable amount would be calculated for income year. In the second step, the calculation of basic income on taxable income is performed. Calculation of the assets for deduction tax for income year has been performed in the third step (Legislation.gov.au, 2017).  Finally, deduct the amount of offset from the amount of tax liability. The result would the income tax for an individual taxpayer in any financial year. 
    g) According to the Honourable High Court of Australia, the case named FC of T v Day 2008 ATC 20-064 provided that it has been important for tax deduction. It has been stated any deduction can be performed over the assessable income, if any loss happens (Iknow.cch.com.au, 2018). However, the loss should be in nature of material not in the form of monetary in nature.  

    h) In the average tax rate is acquired by the total amount of tax divide by total income of the total income. It measures the household tax burden and it also provided the impacts of ability of household to consume in future (Taxpolicycenter.org, 2018). On the other hand, Marginal tax rates measure the influence of taxes over the incentive and also assess the risk investment. It has been seen that high marginal rate reduce the amount of incentive in some particular area (Taxpolicycenter.org, 2018).

    i) According to the provision of Goods and Service Tax Act 1999, a consumption tax can be defined as the tax procured over the consumption of the goods by individual or any company in the course of business or personal needs. It can be termed as GST value of the material consume by the individual and company. Section 38 clause E of Goods and Service Tax Act 1999 provides regulation about the material export by Australian government in cause business (Legislation.gov.au, 2014). Moreover Section 114 also provided rules regarding importation of material in Australia. Section 38-3 subsection 1 provided that GST is also included its charges on the food also in Australia.
     
     
    Question 2
     
    a) Brett has been liable for tax deduction as according to the provision of Income Tax Assessment Act 1997, a person can acquire tax deduction, if he runs personal business or acquire any property (Ato.gov.au, 2019). Moreover, the person can acquire effective deduction in the tax if he uses his personal living place as working place. It has been seen that a person can also avail leverage over each and every material used for the purpose of the office building. Therefore, Brett would be liable for tax deduction under the Australian Taxation Law.

    b) Julie has gained mobile phone charges $500 among which 60% of call has been related with work. It has been seen that the provision of Income Tax Assessment Act 1997 provide leverage regarding Tax who incurred mobile phone charge regarding work (Legislation.gov.au, 2017). Moreover, it has been seen that a person using any personal material for workplace can acquire leverage on his or her professional tax. Hence, Julie would gain leverage on tax by following the provision of Income Tax Assessment Act 1997.

    c) Selly cannot provide any deduction in the tax; however, she would leverage dependent care tax credit according to provision of Income Tax Assessment Act 1997. Tax credit is not equal to deduction in the proportion of tax (Ato.gov.au, 2018). It means to reduce the amount of tax directly from the person paying his or her amount of tax. Selly has been liable for procuring tax credit.  

    d) According to the provision of Income Tax Assessment Act 1997 a person can acquire tax deduction on the stolen deduction from the date it has been lost. One of the long term employees of Jerry stole a material amounting to $20,000. Therefore, Jerry can acquire deduction in the amount of tax from the date the material has been stolen by the employee. 

    e) According to provision of the Income Tax Assessment Act 1997 a local government in Australia can leverage on tax regarding the expense of election including the cost acquire from the candidate campaigning whether it is a state government election or federal election (Ato.gov.au, 2018). Hence, a local government making any expenditure for election can procure in deduction of tax under the provision of Income Tax Assessment Act 1997. 
     
    Question 3
     
    a) The land owned by Andy and the land is leased to Brian for the tenure of 5 years. The lease is given to Brian at the $5,000 premium rate. In order to sell an asset, there is an aspect of making capital gains or loss. Creation of contractual rights is helpful for the introduction of CGT application. Calculation of capital gain is essential for analysing a better structure of the taxation law. There can be an exemption of capital gain through a collection of required resources. As recommended by Graetz and Warren (2016), taxable purposes can be exempted for depreciation of the asset. There can be taxation on the $5,000 premium rate, as it is associated with reduction in loss. Unlawful taxation is exempted for prevention of loss of 50% value.  

    b) The grant of $40,000 is granted to the business organisation Farm Ltd. There is availability of an option for purchasing the 100-acre farm. The farm is purchased at $800,000 for purchasing the farm for the duration of 10 years. Transfer of asset is required for earning interest and there is a requirement of value generation (Edge, 2017). Foreign Corporation can be involved in generation of asset for purchasing 100-acre farm. If 50% discount is applied to the $40,000 amount, there can be involvement of increased profit. The farm was purchased 10 years ago and it can be involved for utilisation of purchasing asset. 

    c) Purchase of house by Olivia and Jamie in 2006 can be a good way for accumulation of money in an enhanced manner. Occupation of house can be involved in the present process for CGT implication. As recommended by Evans et al. (2015), the capital gain can be reduced through evaluating current market value. Transfer of money is required for prevention of capital loss in the subsequent event of CGT. In case of transfer of asset of CGT, there is aspect of cost reduction. Income Tax Assessment Act 1936 can be applied in the present context, as it involves paid dividend to relevant payment procedures. Shareholder analysis can be made through accumulation of asset in the present perspective. CGT obligation is further concerned with 50% discount on entire transaction rate. In 2018/19 tax year, it is essential to follow proper mechanism for the transaction procedure. It can be essential to follow proper mechanism in taxation law, as it is an essential process in taxation law.

    d) 12,000 shares of BHP at the rate of 45 cent is required for trading purpose. The trading rate is required for calculation of current taxation law. Wesfarmers has the share value of $5.20 and it is calculated on the basis of tax return. Taxation law in current perspective is generally involved for improvement in tax return of Chris. In order to sell asset of Chris, it is essential to follow current trading rate. The current taxation system involves focus on investor interest and there is consideration of shareholding capacity by the organisation of Chris. For a shareholder, it is necessary to adjust cost of share at the adjustable gain. There is also the aspect of increased capital gain against transaction cost (McGee et al. 2016). Transaction cost of selling and buying is allowable for deduction for determination of taxation amount. In order to determine taxation rate, it is required to follow the present taxation rate. It is required for consideration of shareholding capacity for carrying out share trading purpose. 
     
    Question 4

    a) Imposition of $2,000 prize for the purpose of best TV advertisement can be required for receiving effective taxation outcome. Accessibility of the amount can be considered in present context for implementation of changes. ATO or Australian Taxation Office is responsible for collection of money in every financial year. Low and Middle-Income Tax Offset (LAMITO) is changed from time to time for assessment of personal asset. Summarisation of taxation purpose is required to be managed for foreign residents. 

    b) An employee has received $500 from the employers for the purpose of incurred cost in the perspective of travelling to Sydney in search of work. According to Street et al. (2017), there have been condition of work for this trip, although the employee has also bought return ticket during he was in Sydney. Process of performance appraisal further can be focused on avoiding any kind of injury at the time of trading. Remaining $120 can be returned. 

    c) Accessibility of the iPhone can be considered in present context for taxation purpose. The present tax system is concerned with management of company law and legislation. There can be improvement in structure of taxation law in 2019. The client is ready to offer $1,000 for the iPhone and it needs to be focused for current taxation purpose. Capital gain tax is applicable in the case of iPhone, as it is concerned with asset disposal prospect. It can be essential to follow current investment earning for offering an enhanced framework to taxation structure.

    d) In the car incident, $10,000 is awarded for personal injury. The individual car accident is a serious matter and case of negligence can be considered in the present case. Prevention of personal damages is further considered for creating a framework for avoiding personal injury. The client can be held responsible for analysing current issue in a more accurate way. It can be required to claim for the damages caused by car accident (McBarnet, 2019). It can be vital to access prospect of value generation through introduction of effective taxation structure. 

    e) The previous value of share was $5 for taxpayer and currently, the trading stands at $7.50. Increased in trading value has an effect on taxation and there is a provision that ensures tax for the taxpayers. The person needs to pay an amount for payment purpose. Capital loss or capital gain in the share involves offering dividend to the individual. An individual person is responsible for offering a portion of income as tax to the government. Increase in taxation purpose has to be integrated in current shareholding capacity. 
     
    Question 5
    There are several factors that are required to consider by Nisu related to Australia for Income Tax Law purposes before withdrawing from University. One of the major factors that are required to consider is a submission of a permanent living situation in which Nisu needs to submit long-term rental agreement and issues related to any correspondence. This document helps in taking liabilities from the Australian Taxation Office (ATO). Through critical analysis of Nisu case, it is observed that the intention to come to Australia is to pursue his study and he manages to get a part-time job. Hence, it can be stated that the ATO residency test is essential to consider that give evidence of residency status, which includes The Domicile test and Commonwealth Superannuation test (Expattaxes.com.au, 2019). On the contrary, If Nisu fails to meet all the criteria or tests that he considered as non-resident for Australian Tax Purposes. In regard to the present case of Nisu, it is identified that on 30 June 2019 he has returned to his home that his home due to a family commitment that may create problems in getting all relevant liabilities from taxation. 
    Through critical analysis of relevant policies and regulations, it can be said that Nisu is required to shows a one-way ticket of Australia that implies that Nisu is returning anytime soon. Through the following documents, it is easy to get respective liabilities by the university or part-time job significantly. Under this Australian Tax process, it is essential to submit a sell or lease document of the property that clearly shows that Nisu is not considering returning to Australia (Ato.gov.au, 2019). Similarly, foreign driving license and ATO with a foreign address are also required submitting that indicates legitimacy and authenticity related to work and study in CQC University. Through critical analysis of identified factors of documents, it has been found that Nisu is required to submit all necessary documents that give firm evidence of Australian resident that clearly show a legal citizen.