Taxation Law Of Australia For Develop Taxation

The Australian Taxation Office (ATO)

Describe about the Taxation Law of Australia for Develop Taxation.

1: Chris Jordan is Tax commissioner of Australia. Besides this, he is also the registrar of Australian business register. There is an executive committee along with different corporate committee who support Chris Jordan in his duties. Commissioner of taxation manages and led the Australian Taxation Office (Australian Taxation Office adds voice authentication to its app, 2016).  

2: Mission statement of the Australian Taxation Office (ATO) – Australian Taxation Office (ATO) has sole mission of contributing to the economic development of Australia and contribute to the social wellbeing of the Australians by encouraging the Australian citizen to participate in tax as well as in the superannuation system (Cameron, 2007).

3: In the official page of Australian Taxation Office (ATO) all the information about the Australian taxation office can be found. The website address of Australian Taxation Office is https://www.ato.gov.au/. The main duty of the Australian Taxation Office is to develop taxation laws and implement taxation system within the Australia (CORTESE, 2006). It efficiently provides the shape to the superannuation and the taxation system as well as efficiently manages it for funding and supporting the Australians.       

4: The Taxpayer’s charter does not permit the Australian Taxation office to reveal any of the information to the other parties. The information can be revealed by the Australian taxation Office at the time the entity require the information for any particular reason (Emmerton, Hodgson and Fisher, 2004).

5: The definition related to the Income Tax Assessment Act 1997 contain on the Division 995.1 of Income Tax Assessment act.

6: According to the Australian Taxation Office the section 25.5 of the Income Tax assessment Act 1997 provide the guidance about the expenditure which must be considered to be an acceptable deduction (Federal Court of Australia, Queensland District Registry: Jupiters Ltd v. Deputy Commissioner of Taxation, 2002). This section’s title is Division 8 – deduction. As per the section 40 of Income Tax Assessment Act capital expenditures are also deductable.  

7: As per the Australian Taxation Office, the section 15.2 of the Income Tax assessment Act includes the value of the allowance in assessable income. The allowances along with other thing provided to the employees regarding their employment or services (Freebairn, 2016).  This sections title is   ‘Income Tax Assessment Act 1997, SECT 15.2’

8: No, the value of the allowance referred to the aforementioned question, where the answer is as per the Australian Taxation office and Income Tax Act 1997 Section 15.2 allowance must be included in the assessable income of the tax payer, the allowance can be provided or accepted in money or any other form (Hamilton, Deutsch and Raneri, 2001) . However, the valuation of the allowance must be computed in monetary form, according to the Income Tax Assessment Act 1997, Section 15.2.  Regarding this specific matter the information can be obtained from the website of Australian Taxation Office as well as from the legal information website of Australia (Gupta, 2015). According to the Australian Income Tax Assessment Act 1997 the legislation and taxation system depicts the entire rules and regulation like the allowance and deduction on the income and expense of the tax payer.  

Mission statement of the ATO

9: The core focus of the Taxation Ruling TR 2013/2 is on the income tax along with the fund for the school and college building. The rule adds the Section 30-15 along with the sub section 30-25 (1) of Income Tax Assessment Act 1997 as well as apply on the individuals who contribute or donate to the public fund that claim to be a school or college building fund (Haslett and Sarah, 2006).

10: The tax decision TD 2016/3 established rates for cent /kilometer in order to private usage of the motor vehicles for the purpose of the Fringe Benefit Taxation Year beginning on 1^st April 2016 (Krever and Black, 2007). The rate applicable for the motor vehicles is as following;    

Engine Capacity	Rate Per Kilometer
0-2500c	52 cents
Over 2500 cc	63 cents
Motorcycles	16 cents

It is through the tax situation of Australia that the residency status would be judged for the concerned case study of Midoona. Both the residential and non residential laws are taken into consideration for evaluating and understanding the situation of Midoona and it provides proper results by taking into account the taxation system of Australia. Being a pop star, Midoona needs to come to Australia for shows and concerts and also earns a lot of money through that (Marsden, 2012). This is the reason why the taxation laws of Australia needs to be applied on the income made by her and  while doing this, the residential status of Midoona also needs to be considered.

In case of calculating the income tax of Midoona, it needs to be calculated on the basis of the money earned by her in Australia and the deductions that need to be done from the amount by taking into consideration all the aspects of the income made by Midoona. In case of calculating tax following the Australian System of Taxation, one needs to give a declaration of the income made by that individual, can claim deductions of the income, income tests and offsets and rebates made (Martin, Gregor and Rice, 2008). The case study is analyzed and evaluated from the perspective of income tax system present in Australia, and therefore the amount of tax that need to be given along with the deductions being claimed are calculated on the basis of the income that Midoona derives directly from the shows and concerts that she does in Australia. The travelling tax is implemented or applied in case of Midoona since she is not a permanent resident of Australia, but just a foreign resident. As a result of this, the different residency status of the taxes needs to be taken into consideration in order to calculate the income tax of Midoona (Nethercott, Richardson and Devos, 2011). The Imperial Hotel is visited by Midoona in order to conduct the shows and for this reason the income tax is deducted for the earnings made by Midoona from her shows and not for the prizes that are owned by her.

Taxpayer’s charter

As a kartaoke hostess Midoona also earned $45,000. For this income made by Midoona the appropriate taxation should be filed and also must be declared in order to ensure the taxation laws and rules of Australia are properly implemented in it. Therefore if Midoona properly follows the rules and regulations of the Australian Taxation System, then she will be respecting the taxation system and maintaining it properly (Nethercott, Richardson and Devos, 2011). Therefore according to the rules of the taxation system of Australia, the tax would be deducted from the amount of money earned by Midonna from the job conducted by her in Australia.

The assessable income of an individual is based on the residency of the individual in that country and therefore it is necessary for the tax payer to understand whether he or she is a resident of the county while filing the tax (Robertson, 2008). In case of Australia, there are some rules and regulations that exist which determine whether an individual is a resident of the country or not. In case of foreign citizens who have stayed in Australia for a continuous period of six months in a particular year of taxation are considered as Australian resident for tax purposes for that particular year. The calculation of the tax of those individuals would be done according to the method of the Australian residents’ tax calculation. In this particular case, it can be seen that Midoona came to Australia on the 2^nd of July 2015 as a part of the musical tour around the world that she was conducting. The home town of Midoona is Bourbon-On-Ryde hich a small English town. It is to be noted that Midoona did not stay at a single place more than a period of six months (WALLER, 2007). She came to Sydney for her concernt on 2^nd July 2015 and then performed at Adelaide and wrapped up her musical tour on 15^th August 2015. After finishing with all the scheduled concerts and shows, Midoona took a vacation in Australia and stayed only for one month at the Northern Territory town of Darwin. Therefore it can clearly be understood that Midoona did not stay at a single place in Australia for a period of six months continually and thus can under no situation be considered to be n Australian resident for the taxation year 2015-2016. But on 1^st of April 2016, Midoona again came to Australia with a permanent job that required for her to stay in Australia for two years continuously (Woellner, 2013). Therefore in this case Midoona would be considered as an Australian resident for tax purposes for the financial year 2016-2017.   

Income Tax Assessment Act 1997

	Income ($)		Expenditure ($)
Australian tour	450000	operating expenses	380000
Appearance fees	15000	Spend on dresses	1000
Cash Prize	1000	Subscription to magazine	200
Cash Prize	200	Membership subscription	500
Income from job	45000
Tips from customer	2500
	513700		381700
Assessable income	132000

The tax rates for the non resident for the year 2015-2016 are as follows:

Taxable income	Tax on the income
0-$80,000	32.5c for each $1
$80,0001-$180,000	$26,000 plus 37c for each over $80,000
$180,001 and over	$63,000 plus 45c for each $1 over $180,000

Midonna has to pay the taxes on her income by following the Australian Taxation Law. The assessable incoe of Midonna is $132,000. Thus the tax that needs to be paid would be under the slab $26,000 along with 37 c for each over $80,000 according to the Australian Taxation Law. Midoona has to pay the taxes on the money earned by her from the different sources. At the first stage, Midoona earned an amount of $45,000 from her musical tour in Australia and then she got an appearance fee of $15,000 for being featured in Affairs of Today (WALLER, 2007). After this she received a prize that consisted of a weekend at Alatai Holiday Apartments and the cash prize of $500 each. Then Midoona wins a cash prize of $200 after participating in a stiff competition. As a Karaoke hostess at the Imperial Hotel in Darwin, Midoona earned $45,000. All these incomes are assessable and therefore the tax would be calculated according to that. The tip received by Midoona at the hotel was of the amount of $2,500. The expenditures that would be taken into consideration in this case re operating expenses, money required to buy two dresses, magazine subscription and an yearly membership subscription in a monthly newsletter. The understanding of the income tax to be implemented on the income of Midoona would be calculated by following the rules and regulations of the Australian Taxation System. Midoona is liable to pay the proper tax on the money earned by her from the different sources in Australia. The income tax rules are clearly explained by the Australian Taxation Law (Woellner, 2013).

3. It is through the application of ITAA36 and ITAA97 taxation rules that come under the Act of 1953 that the case study taken into consideration can be properly justified. This aids in determining the tax assessment as it takes into consideration the necessary rules and regulations that are required to make the income tax assessments of the income made by a particular individual (Nethercott, Richardson and Devos, 2011). The expenses would also be calculated in association of the objects owned by the individual that have assurance policies. This also aids in formulating proper income tax assessments along with the provision of the assurance policies which eventually increases the value of the investments associated with that of the policies that are present (Robertson, 2008). The deduction policies are formulated in such a way so that the investments made by the individual also get calculated.

In case of Midoona, she earned a lot of money and the tax would be implemented on the amount of $450,000 which has been earned by Mioona. The deductions would be based on the amount of money earned by Midoona which would thereon aid in the proper justification of the taxation system of Australia.

References

Australian Taxation Office adds voice authentication to its app. (2016). Biometric Technology Today, 2016(2), p.12.

Cameron, A. (2007). Review of the income tax exemption for structured settlements. [Canberra]: [The Treasury].

CORTESE, C. (2006). Taxation and the Australian Superannuation System: An International Comparison.Australian Accounting Review, 16(39), pp.77-85.

Emmerton, K., Hodgson, H. and Fisher, R. (2004). Tax questions and answers. Sydney: Australian Tax Practice.

Federal Court of Australia, Queensland District Registry: Jupiters Ltd v. Deputy Commissioner of Taxation. (2002). Gaming Law Review, 6(6), pp.571-576.

Freebairn, J. (2016). Taxation of Housing. Australian Economic Review, 49(3), pp.307-316.

Gupta, S. (2015). Various Tax Authorities and their Powers under the Income Tax Act. Asian Journal of Management, 6(1), p.25.

Hamilton, R., Deutsch, R. and Raneri, J. (2001). Guidebook to Australian international taxation. Australia: LexisNexis Butterworths.

Haslett, T. and Sarah, R. (2006). Using the Viable Systems Model to Structure a System Dynamics Mapping and Modeling Project for the Australian Taxation Office. Systemic Practice and Action Research, 19(3), pp.273-290.

Krever, R. and Black, C. (2007). Australian taxation law cases 2007. Pyrmont, N.S.W.: Thomson ATP.

Marsden, S. (2012). Australian master bookkeepers guide. North Ryde, N.S.W.: CCH Australia.

Martin, N., Gregor, S. and Rice, J. (2008). User centred information design practices and processes at the Australian Taxation Office. Information Design Journal, 16(1), pp.53-67.

Nethercott, L., Richardson, G. and Devos, K. (2011). Australian taxation study manual. North Ryde, N.S.W.: CCH Australia.

Robertson, P. (2008). Australian master tax guide 2008. Sydney: CCH Australia.

WALLER, V. (2007). The Challenge of Institutional Integrity in Responsive Regulation: Field Inspections by the Australian Taxation Office. Law & Policy, 29(1), pp.67-83.

Woellner, R. (2013). Australian taxation law 2012. North Ryde [N.S.W.]: CCH Australia.