Week Legal Essay

Week 01 LEGT2751 Records


ss4, -5, -10, -15 - Shows how you can calculate duty, and who should pay out tax s36-10 - Explanation of a tax loss

s251S – Medicare levy

Tax formulas [2. 2-2. 3]

income tax sama dengan (taxable salary x tax rate) – tax offsets

• Taxes offsets – eg imputation credit via share trading, listed in s13-1

taxable profits = assessable income -- deductions

• Assessable income = ordinary salary – lawful income um Ordinary income s6-5 – assessable income according to ordinary ideas o Lawful income s6-10 – assessable income in accordance to procedures • Basic deduction – s8-1, specific deductions – s8-5

Types of profits [2. 14]

• If an sum is equally ordinary and statutory income it is only taxable once (s6-. 25), and rules associated with statutory cash flow prevail more than ordinary income • Further provisions prevail over more general provisions in ITAA36 only • Items that happen to be neither normal or lawful are not salary, and NOT exempt income for example gifts, not taxable s6-15

Keily v FCT – pension was considered regular income

• " features of income of whatsoever kind happen to be said to include recurrence, reliability and periodicity”

Income generally from:

• Remuneration for personal services (rowe's case)

• Rewards by carrying on a business (cooling's case)

• Return on investment (slater holding's case)

Exempt Profits [2. 24-2. 27]

• Exempt income – cash flow that is omitted from assessable income. Types: o Exempt entities [s11-5]

o Salary that is exempt [s11-10]

u Certain profits derived simply by certain entities – for example centerlink [s11-15] • Types of s11-15 exempt income:

o Defence force allowances s51-5

u Maintenance obligations to loved one or child s51-50

to Educational allowances s51-10

to Certain foreign source income

o Quantity of welfare repayments

Statutory Salary [5. 1-5. 2]

• Lawful income is legislated cash flow, while common income is usually judicial salary • s6-10 is rather than an assessing dotacion, assessment components are the particular provisions • ITAA97 – statutory dominates over regular

• ITAA36 – specific prevails over general

Reductions [8. 1-8. 3]

S8-1 – general deductions. Loss or out bound from:

• Gaining/producing the assessable cash flow

• Holding on a organization for the purpose of increasing your assessable income Cannot deduct in the event that:

• Loss in capital character

• Loss of private/domestic nature

• Reduction associated in gaining exempt income, or non-assessable salary

S8-5 - specific deductions

• Fundamentally states that you could deduct a sum that a dotacion of the Work allows

Tax Losses [9. 57-9. 60]

• s36-10 – duty losses

• tax loss are transported forward indefinitely until they are really recouped – after 1989/1990 income yr • taxes loss arises when reductions exceed TOTAL income, not simply assessable cash flow

Tax Loss = Deb > AY + Net Exempt Cash flow (NEY)

• NEY s36-20 – every exempt cash flow less non-capital outgoings/losses received in deriving income, less any taxes on the exempt income • Tax loss is first counteract against:

to Net exempt income; after which

o Assessable income over deductions [s36-15]


• 6-5(2) – For Australian residents, assessable income involves income by all resources, in or perhaps out of Australia • 6-5(3) -- For non-Australian residents, assessable income involves income by all Aussie sources • 6-10(4) -- For Australian residents, assessable income involves the lawful income coming from all options, whether this in or out of Australia. • 6-10(5) -- For non-Australian residents, assessable income contains all statutory income coming from all Down under sources. • 136-5, -10, -25 – related to non-resident CGT celebration treatment • S23(r) -- Income derived by a non-Australian resident via a foreign source completely out of Quotes is not impacted by income tax

Jurisdictional Matters [2. 31-2. 32]

• Australian...