Taxation

Taxation Requirement 1 Part 1 (a) Explain what is meant by “income by ordinary concepts”. a) Ordinary income (s6-5) is an element of Assessable income. In the context of the Income Tax Assessment Act 1936 and ITAA 1997 assessable income is made up of Ordinary Income and Statutory Income. Assessable income includes income according to ordinary concepts which is called ordinary income s6-5(1). Legislatures and courts have consistently

Taxable Payable = Tax rate * (Assessable income (s 6-5) – Allowable deduction (s 8-1/8-5)) – Tax offset + Medicare levy and surcharge Tax offset: For individual: franking credit, foreign tax credit; low income earner rebate For company: franking credit, foreign tax credit Low income earner: s 159N ITAA36: 600 – (36,000 – 25,000) * 0.04; Less than 25001, rebate $600 Medicare levy threshold: 50,000+ 1% surcharge 0~16284, Nil; 16285~17604, Nil + 20% of excess over 16284; over 17604, 1.5% of taxable

Taxation in India The Indian Tax Structure is quite elaborate, with clear distinction in authority between Central, State and local governments. The taxes levied by the Central government are on income (other than tax on agriculture income which would be levied by the state government), customs duties, central excise and service tax. The State government levies Value Added Tax (VAT), sales tax in states where VAT is not applied, stamp duty, state excise, land revenue and tax on professions. Local

system to a territorial system, which means that as a resident company it would be subject to tax in respect of income derived from the source of income. Furthermore, in relation to domestic rules there is only moderate CFC legislation in the UK and taxation of passive income when it comes to dividends. Evaluating the options: By taking into account the non-tax and tax reasons, we are able to identify that there are positive incentives to the restructuring of The Group. However, we must consider

3. Source-source double taxation. This is when both countries consider the source of the income to be within their country. Tax treaties will provide rules for determining the source of income. The source rules not only clarify in which country the income originated and may be tax but also states that the country that does not impose taxes must provide a relief from double taxation.” Economic double taxation is where the same income is taxed in more than one country in the hands of different taxpayers

essential to understand how the taxation system is applied to residents and non-residents in order to maximize one’s own

Taxation is the principle means through which the government collects revenue. Government tax is used for providing essential public amenities, that otherwise would not be provided by private sector. These essential public services provided by the government include security and physical infrastructure. Therefore, it is vital for the country that individuals working in various economic sections pay tax. The government will then be able to consistently offer these services to the economy, which in

new policy of increases taxation on the top one percent of Canadians. The impact of the Liberal’s proposed tax changes on families will depend on the family’s specific financial circumstances. We could see higher income families benefiting or hurting from the tax cut on middle incomes. As read in the article above we are already seeing slight changes to the policy rules such as an increase of $200,000 to $222,000 of the income that will be affected by this increase in taxation so we can expect to see

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The

Assessment 1 ACCT20023 - Australian Taxation Law Term 3, 2013 Contents PART A. 3 PART B. 6 1. Gross Salary – Banyule City Council 6 2. Reportable Fringe Benefits [Motor Vehicle] – Banyule City Council 7 3. Motor Vehicle Allowance – Banyule City Council 7 4. Gift of expensive wine from ratepayer of Banyule City Council in appreciation for solving a planning permit issue 7 5. Gift of a golf club from a tax client as a birthday present 7 6. Net proceeds from business – Tax advice given