Question:
Discuss About The Power In Formulation Of Laws As Taxation?
Based on the main source of the information taken from the commonwealth parliament taxation regulation this has been seen to be derived as per section “51(ii), 53, 55, 90 and 96”. As mentioned in the context of “Section 51(ii) of Australian Constitution”, the parliament is seen to be having the power in formulation of laws as per the taxation. In subject to the provisional laws, it is not seen to discriminate the various portions of the states (Barkoczy, 2016).
The main source of the documentation is seen to set out with the law. The primary source of the case laws is seen to comprise of the various types of case laws which has been created by the statutory bodies. These sources have been further observed to be derived with the varied centre of laws who is responsible for the single authoritative written record for the law. As per the Australian law, the second source of the tax is seen to be interpreted based on the court legislation and source of the tribunals. The main rulings have been further seen to be base on the legislations defined by the commissioner of taxation (Albarea et al., 2015).
The main ruling of the taxation as per “TR 98/17” and the main concern for this has been further discerned as per the various legislation which seen able to be based on the “subsection 6 (1) of the Income Tax Assessment Act 193”.
“Medicare Levy” and “Medicare Levy Surcharge” and the different types of the reductions have been computed with the inclusion of return on taxation. The Medicare levy has been further seen to be base on the different types of the calculation which has been seen to be taken from the different types of consideration from the exemption and entitlement. The individual tax payer has been further seen to levy the Medicare levy 2% partially fund for accessing the healthcare (Devereux & Feria, 2014).
As per “Schedule 2 of the Competition and Consumer Act 2010”, any sort of the misconduct and the exclusion in “Section 18 of the Australian Consumer Law “. The preventive measures associated to deceptive and artificial demeanour has been further defined under the “Section 12DA of the Australian Securities and Investment Commission Act 2001”. The primary objective has been further taken for consumer protection for the issues relating to misleading practice of trade (Taylor & Richardson, 2014).
As per “Section 25-45 of the ITAA 1997”, the loss has been seen to be originated from the theft and this section has been seen to be based on the various types of the consideration taken from the loss concerning money. The important treatment for the same has been listed below as follows:
As per the case “W Thomas & Co Pty Ltd v FC of T (1965)”, the various types of deductions which has been seen to be considered as per the report which has been undertaken by the tax payers. The case study has been further able to relate to various types of concerns related to merchant of grain and purchase of building. The taxpayer has undertaken huge sum of repairs which has been taken based on the roof, walls and floor of the premises. The main interpretations of the case have included the cost of repairs. This is not taken based on the allowable deductions as the expenditure as the amount incurred in repairs was not considered with the objective deriving chargeable income of the taxpayer (Herault & Azpitarte, 2015).
The main value of the stock has been further seen to be based on inclusion of valuing stock at the end of the income year when it was taken place:
An individual with a taxable income of $45,000 needs to pay a tax amount of $3572. Moreover, the taxpayer is obliged to pay 32.5 for every $1 over $37,000.
The employer and the taxpayer has been seen to be referred as PAYG as “Pay As You Go”, which consists of making the payment at regular interval to the employees. The collection of the PAYG tax acts as an instalment procedure for the instalment method for the tax collection done at regular payments towards the expected income of the individual. It has been further discerned that the individual will under the obligation for returning the file for that particular year (Rohlin et al., 2014).
It has been stated with “Division 8 of the Income Tax Assessment Act 1997”, with the guidelines which are associated to the deductions of expenses and losses. The division has been further seen to provide the various types of provisions for the assistance in making the differentiation of the usual deductions under “section 8-1 of the ITAA 1997”. It has been further able to provide the guideline for the deductions which needs to be considered as per the “section 8-1 of the ITAA 1997” (Khadem, 2015). An individual as per “section 8-1 of the ITAA 1997” will be able to claim for the deductions relating to the expenditure and the loss associated to:
The taxpayers are further seen to be provided with the opportunity for claiming particular deductions from assessable income as per “section 8-5 of the ITAA 1997”. The main consideration of Ram has been further incurred with the characteristics and deductions which have been further seen to be explained based on the various types of the consideration based on the stated income. An individual taxpayer may be able file for the tax return, and the same is applicable for Ram for drafting an objection against assessment made.
It has been further seen to be understood that “Para 11 of the Taxation Ruling 2011/5”, clearly states that individual taxpayer can raise objection for not being satisfied with the tax Management stated in section “175A(1) of the Income Tax Assessment Act 1936. The Interpretive Decision 2002/81” has been further seen to be associated to number of issues for the allowable expenditure for book-keeping expense and legal disagreement. As per the present situation Ram will be able to claim for the allowed deductions as per “section 8-1 of the ITAA1997” for incurring solicitor expense (Meng, Siriwardana, & McNeill, 2013).
The resident has been defined as per the “section 995-1 of the ITAA 1997”, which has been further illustrated with the treatment of Australian resident for taxation. This has been further seen to be defined as per “Section 6-1 of the ITAA 1997”. There have been several explanations of the residents and the states under the primary residential status determination. As per “Para 32 of the Taxation Ruling 98/17”, an individual will be treated as a tax resident of Australia in conformity with the “section 6-1 of the ITAA 1936”. There has been mainly four residency test observed for determining the residential status as per “Section 6-1 of the Income tax Assessment Act 1936”. The aforementioned tests are stated as follows:
The taxpayer has been seen to be arrived as an international student in Brisbane for the study and considered as an occupant for tax assessment based on the ordinary concept. In case the treatment is not done as per Australian inhabitant, the concerning ordinary concept for the statutory test is applicable for the ascertainment of the status of occupancy and complying with the primary test.
As per the test of domicile, a person with permanent dwelling in Australia will be considered as an occupant of Australia for taxation. On the contrary, the occupant of Australia will be enrolled with more than six month of duration. The present case of Tina has been noticed with the arrival in Australia for the educational reason and period of residence for more than 183 days. Henceforth, the result has been seen with Tina being regarded as an Australian occupant for determination of Tax.
Based on the “Section 4-15 of the ITAA 1997”, a resident of Australia is taxed for the incomes derived from global rulings. Based on the rulings of the section from the taxable income, the computation is done as per the subtraction of the allowable deductions from the assessable income. The categorization of the assessable income has been considered as per “Section 6-5 of the Income tax Assessment Act 1997”. The “section 6-10 of the ITAA 97” income is not considered as an ordinary income and not considered under the statutory income. The current scenario of Jimmy and the income has been regarded with the employment in the restaurant which will be derived as per the ordinary income and various types of the consideration with “section 6-5 of the ITAA 97”.
The tips received by Jimmy have been considered based on the incentives and have a direct relation with the employment income which will be a part of the income assessable. The receipt of the sum has been further seen to be considered as per the purpose of taxation. Based on the given case Jimmy has received a total amount of $250 included in the assessable income. It needs to be further noted that the various types of consideration for the assessable income has been determined based on the exempted income and the income which has been not been considered as per “section 6-20 of the Income Tax Assessment Act 1997”.
It has been further discerned that gifts are not considered for taxable income and not received as a portion of the business activity which has been a part of the producing activity of the taxable income. On the contrary, the gifts are received on part of the parents which are not considered for taxation and inclusion of the business activities. The rulings have been defined as per “Taxation Ruling TR 97/17” and the food and drink are seen to be offered as per the employer to employee with the meal entertainment and purpose of fringe benefit of taxation.
This consideration has been further taken as per benefits assigned to Jimmy from his employer claimed for the allowable deductions for the expenses of the employees. The income produced needs to be taken into consideration for taxation and fringe benefit of the food and meal and the fringe benefit offered by the employer. It needs to be understood that the fringe benefit for the dinner from the employer will be included with the assessable income. The taxation computation is stated below:
The ruling of taxation TR 93/30 is seen to be concerned with the deduction allowable for the office expenditure in home. The ruling is applicable:
The general rule of taxation ruling has been considered with “Taxation Ruling TR 93/30” based on the expenses linked with the domestic or the private character which does not qualify for the purpose of taxation. Despite of this, the main ruling has been further able to suggest on the various types of the consideration which has been able to state on the different types of the ruling which ha been able to be considered for the deductions.
As per the case “Swinford v FC of T (1984)”, in case the area of place of abode is seen to be having the character of a business place, then the expenditures related to the portion of the home has been seen to be associated with the business natured character and allowable deductions. Henceforth, Josie will be able to claim for the expenditure as it has been discerned that the various types of the allowable deductions has taken place from her in the home office (Bérard-chagnon & House, 2016).
References
Albarea, A., Bernasconi, M., Di Novi, C., Marenzi, A., Rizzi, D., & Zantomio, F. (2015). Accounting for tax evasion profiles and tax expenditures in microsimulation modelling. the betamod model for personal income taxes in Italy. International Journal of Microsimulation, 8(3), 99–136.
Barkoczy, S. (2016). Foundations of Taxation Law 2016. OUP Catalogue.
Bérard-chagnon, J., & House, G. (2016). Using data linkage to evaluate the consistency of place of residence between census data and tax data. In Proceedings of Statistics Canada Symposium.
Devereux, M., & Feria, R. de la. (2014). Designing and Implementing a Destination-Based Corporate Tax. Oxford University Centre for Business Taxation, (May), 1.
Herault, N., & Azpitarte, F. (2015). Recent Trends in Income Redistribution in Australia: Can Changes in the Tax-Benefit System Account for the Decline in Redistribution? Economic Record, 91(292), 38–53. https://doi.org/10.1111/1475-4932.12154
Jatrana, S., Pasupuleti, S. S. R., & Richardson, K. (2014). Nativity, duration of residence and chronic health conditions in Australia: Do trends converge towards the native-born population? Social Science and Medicine, 119, 53–63. https://doi.org/10.1016/j.socscimed.2014.08.008
Khadem, N. (2015). Tax the rich and save the budget $19.5b a year, The Australia Institute urges. The Australian Financial Review, p. 2.
Meng, S., Siriwardana, M., & McNeill, J. (2013). The Environmental and Economic Impact of the Carbon Tax in Australia. Environmental and Resource Economics, 54(3), 313–332. https://doi.org/10.1007/s10640-012-9600-4
Rohlin, S., Rosenthal, S. S., & Ross, A. (2014). Tax avoidance and business location in a state border model. Journal of Urban Economics, 83, 34–49. https://doi.org/10.1016/j.jue.2014.06.003
Taylor, G., & Richardson, G. (2014). Incentives for corporate tax planning and reporting: Empirical evidence from Australia. Journal of Contemporary Accounting & Economics, 10(1), 1–15. https://doi.org/10.1016/j.jcae.2013.11.00
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