Tabl2751 2016-2

Australian School of Business
Taxation and Business Law

TABL2751 BUSINESS TAXATION
Topic Outlines & Reading Guide

Semester 2, 2016
This document sets out in more detail the topics that are to be discussed each class, as
well as required reading for each class.
Required reading may consist of:
1) Text Understanding Tax Law (referred to as UTL) numbers given refer to
paragraph numbers in the most recent edition (2016)
2) Legislation all legislation will be available in Core Tax Legislation
ITAA97 = Income Tax Assessment Act 1997
ITAA36 = Income Tax Assessment Act 1936
TAA = Taxation Administration Act 1953
GST Act = A New Tax System (Goods and Services Tax) Act 1999
FBTAA = Fringe Benefits Tax Assessment Act 1986
3) Cases note, the cases listed in this guide are those that you should ensure you
read as least a summary of, in either your text, casebook, or through an online
resource such as the CCH database. You may be examined on these cases. (Note,
numerous other cases will be discussed in your text and in lectures that will not be
discussed in as much detail. They will still be relevant in answering tutorial
problems, your assignment, and hypothetical problems in your final exam).
SUMMARY OF TOPICS AND TEXTBOOK CHAPTERS

NB: Please refer to the detailed topic guide each week for paragraphs to read from the
relevant chapter(s) of UTL.
(E.G: In Week 1, Chapters 1, 2 and 16 are listed there are only a small number of
paragraphs from Chapter 2 you are required to read in Week 1 and Chapter 16 is further
non-required reading)
Wk
Lecture Topic
Introduction to Australian taxation system
Jurisdictional issues
The tax formula
Income
UTL Chapter Reference

Chapter 1
Chapter 2
Chapter 16
Chapter 2
Chapter 3
Income (cont)
Tax accounting
Capital gains tax
Chapter 3
Chapter 5
Chapter 4
Chapter 6
1
2
Chapter 8
Deductions general
Deductions specific
Trading stock
Chapter 9
Chapter 11
Deductions capital allowances / capital

works
Chapter 10
Taxation of partnerships
Taxation of trusts
Chapter 14
Chapter 15
Taxation of trusts (cont)

Taxation of companies
Chapter 15
Chapter 12
Mid-Semester Break
10
11
12
13
Taxation of companies (cont)
Chapter 12
Chapter 13
Anti-avoidance
Fringe benefits tax
Chapter 17
Chapter 7
Goods and services tax

NO LECTURES
Chapter 19
-
WEEK 1 INTRODUCTION TO THE AUSTRALIAN TAXATION SYSTEM

Outline of Topic
1.1 What Is A Tax?
Why Do We Have Taxes?
Tax Policy Objectives
1.2 What Taxes Do We Have?
Historical background
Constitutional basis
Overview of the Australian tax system
1.3 Sources of Australian Taxation Law
Legislation
Cases
Rulings
1.4 The tax equations
Income tax
Taxable income
Assessable income
Deductions
Tax liability
1.5 Jurisdictional aspects
Residents vs. non-residents
1.6 Returns and Assessment [Discussed only briefly in lectures. Not examinable].
Required reading:
UTL: Chapter 1; Paragraphs 2.1 2.4, 2.31.
Legislation: ITAA97 s4-1, s4-10, s4-15, s6-5, s6-15, s6-20, s6-23, s6-25, s8-1, s8-5, s810; s36-15
Further reading (not examinable): Chapter 16
WEEK 2 INCOME
Outline of topic and reading list
Competing concepts of income

The Accounting Concept
The Economic Concept
The Judicial Concept
UTL: Paragraphs 2.5 to 2.13
Income under the ITAA97

Ordinary income
Statutory income
Exempt income
Non assessable non exempt income
Ordinary income vs. statutory income

UTL: Paragraphs 3.1 to 3,2; 5.1
Ordinary income propositions

UTL: Paragraph 3.3
Amounts not convertible into money are not ordinary income

Cases:
Tenant v Smith [1892] AC 150
FCT v Cooke & Sherden 80 ATC 4140
Payne v FCT 96 ATC 4407
Capital amounts do not have the character of income

The Structure v Process Approach
Mere realisation v Carrying on a business or profit making scheme
Nature of consideration given for receipt
Fixed v Circulating Capital
Examples
Cases:
Sun Newspapers Ltd & Associated Newspapers Ltd v FCT (1936) 61 CLR 337
Californian Copper Syndicate v Harris (1904) 5 TC 159
Memorex Pty Ltd (1987) 87 ATC 5034
Amounts received as substitutes for or compensation for lost income are

themselves income
UTL: Paragraphs 3.18 to 3.20; 3.67 to 3.68
Cases:
McLaurin v FCT (1961) 104 CLR 381
Liftronic Pty Ltd v FCT 96 ATC 4425
Gifts unrelated to employment / services / business are not income

Cases:
Scott v FCT (1966) 117 CLR 514
Proceeds of gambling and windfall gains are not income

Mutual receipts are not income

To be income, an amount must be beneficially derived

UTL: Paragraph 3.33
Characterisation in the Hands Of The Recipient

Cases:
Federal Coke Co Pty Ltd 77 ATC 4255
Income generally exhibits recurrence, regularity and periodicity

UTL: Paragraph 3.36
WEEK 3 INCOME (CONT) / TAX ACCOUNTING

INCOME (CONT)
Amounts derived from employment or the provisions of services are income

UTL: Paragraphs 3.37 to 3.42; 5.4, 7.1
Cases:
FCT v Blake (1984) 15 ATR 1996
FCT v Dixon (1952) 86 CLR
FCT v Harris 80 ATC 4238
Kelly v FCT 85 ATC 4283
FCT v Stone 2003 ATC 4584
Legislation: ITAA97 s 15-2; ITAA36 s 23L
Amounts derived from carrying on a business are income

What is a business?
Profit-making purpose
Repetition and regularity
Organisation and system
Size and scale of operations
Other factors
What is the scope of the business?
Role of asset in the business
Isolated business ventures
Extraordinary transactions
Cases:
London Australia Investment Co Ltd v FCT (1977) 138 CLR 106
Californian Copper Syndicate v Harris (1904) 5 TC 159
Ferguson v FCT 79 ATC 4261
FCT v Myer Emporium (1987) 163 CLR 199
FCT v Whitfords Beach Pty Ltd (1982) 150 CLR 355
Westfield Ltd v FCT 91 ATC 4234
Montgomery v FCT (1999) 198 CLR 639
FCT v Cooling 90 ATC 4472
Scottish Australian Mining Co Ltd v FCT (1950) 81 CLR 188
Statutory income: non-cash business benefits

Legislation: ITAA36 s21, s21A
Case:
FCT v Cooke & Sherden 80 ATC 4140
Amounts derived from property are income
Interest
Rent
Annuities

Cases:
McCauley v FCT (1944) 69 CLR 235
Stanton v FCT (1955) 92 CLR 630
Statutory income: Royalties

UTL: 5.9 to 5.13
Legislation: ITAA97 s15-20; s995-1 definition of royalty
TAX ACCOUNTING
What is tax accounting and the importance of timing

Legislation: ITAA97 s6-5(2)
Cash vs. Accruals basis when is each basis appropriate?

Cases:
CT (SA) v Executor Trustee and Agency Co of South Australia Ltd (Cardens Case)
(1938) 63 CLR 108
Henderson v FCT (1970) 119 CLR 612
Derivation on an accruals basis

Legal recoverability
Advance receipts
UTL: Paragraphs 4.13 to 4.
Cases:
Arthur Murray (NSW) Pty Ltd v FCT (1965) 114 CLR 314
Derivation on a cash basis

Actual vs. constructive receipt
UTL: Paragraph 4.32
Legislation: ITAA97 s6-5(4)
Profit as assessable income (brief discussion only)

Cases recognising net profit and loss as items affecting taxable income
Time of recognition of net profit and loss
Calculation of net profit and loss
Cases:
FCT v Whitfords Beach Pty Ltd (1982) 150 CLR 355
WEEK 4 CAPITAL GAINS TAX

NB: All legislative references in this topic refer to the ITAA97 unless otherwise specified.
Introduction to CGT
Fundamentals of CGT
Integration into income tax
Key concepts:
Net capital gain;
CGT event;
capital gain;
capital loss;
calculating capital gain and capital loss
Indexation and CGT discount
Legislation: ITAA97 s100-10(1); s100-15; s100-45; s102-5; s102-10; s102-15; s10220; s102-25, s104-5; s115-5; s115-10; s115-15; s115-25; s115-40; s115-100.
CGT events
CGT assets
What is a CGT asset?
Special rules for personal use assets
Special rules for collectables
Acquisition of CGT assets
Separate CGT assets
Disposal of a CGT asset
Legislation: s108-5; Subdivision 108-B; Subdivision 108-C; Subdivision 108-D;
s109-5; s118-10.
CGT Event A1 disposal of a CGT asset

UTL: Paragraph 6.25, 6.85 to 6.88
Legislation: s104-10
CGT Event C1 Loss or destruction of a CGT asset

CGT Event C2 Cancellation, surrender and similar endings

CGT event D1 - Creating contractual or other rights

CGT event H1 Forfeiture of deposit (brief discussion)

UTL: Paragraphs 6.46 6.47
Capital proceeds
General rule
Special rules
Modifications to the general rule

Legislation: s116-5; s116-10; s116-20(1); s116-25; s116-30; s116-40; s116-45;
s116-50; s116-55; s116-60
Cost base of CGT assets

5 elements
Modifications to general rules
Former indexation system
Legislation: s110-1; s110-5; s110-10; s110-25; s110-35; s110-36; s110-37; s110-38;
s110-40; s112-15; s112-20; s112-25; s112-30; s112-35.
Reduced Cost Base

Exemptions
Pre CGT assets

Exempt assets
Exempt capital receipts
Anti-overlap provisions
The main residence exemption

Legislation: s104-10; s118-20; s118-24; s118-25; Subdivision 118-B;
NB: THE TOPICS DISCUSSED UP TO THIS POINT WILL BE EXAMINED IN YOUR
MID-SESSION EXAM.
WEEK 5 DEDUCTIONS GENERAL

General vs. Specific deductions

UTL: Paragraphs 8.1 to 8.6, 8.25
Legislation: ITAA97 s4-15; s8-1; s8-5; s8-10
Loss or outgoing
Case:
Charles Moore & Co (WA) Pty Ltd v FCT (1956) 95 CLR 344
To the extent that

Cases:
Ronpibon Tin NL v FCT (1949) 78 CLR 47
Magna Alloys & Research Pty Ltd v FCT (1980) 11 ATR 276; 80 ATC 4542
Incurred vs. necessarily incurred

Legislation: ITAA97 s 8-1
Case:
FCT v James Flood (1953) 88 CLR 492
Tax office publications:
TR 97/7 - Income tax: section 8-1 - meaning of 'incurred' - timing of deductions
Nexus requirement in gaining or producing; in carrying on business
Incidental and relevant test

Essential character test
Condition of employment
Purpose
Pre-commencement expenses
Post-cessation expenses
UTL: Paragraphs 8.7 to 818; 8.21 to 8.24; 8.53 to 8.59
Cases:
Herald & Weekly Times Ltd v FCT (1932) 48 CLR 113
Amalgamated Zinc (de Bavays) Ltd v FCT (1935) 54 CLR 295
Softwood Pulp and Paper Ltd (1976) 7 ATR 101
Steele v DFCT 99 ATC 4242
Negative limbs - capital
Capital nature
Process-structure test
Circulating/fixed capital
Examples
UTL: Paragraphs 8.19, 8.60 to 8.68
Case:
Sun Newspapers Ltd & Associated Newspapers Ltd (1938) 61 CLR 337
Private or domestic nature

Relevance and character
Specific categories
UTL: Paragraphs 8.20, 8.69 to 8.80
Legislation: ITAA97 Subdivision 34-B
Cases:
Handley v FCT (1981) 148 CLR 182
FCT v Forsyth (1981) 148 CLR 203
Lunney v FCT (1958) 100 CLR 478
FCT v Payne (2001) 202 CLR 93
Mansfield v FCT (1995) 31 ATR 367
FCT v Edwards (1994) 28 ATR 87
Incurred in producing exempt or NANE income

UTL: Paragraph 8.16, 8.81
Case:
Ronpibon Tin NL v FCT (1949) 78 CLR 47
WEEK 6 DEDUCTIONS SPECIFIC / TRADING STOCK

DEDUCTIONS SPECIFIC
General vs. Specific deductions

UTL: Paragraph 9.1
Legislation: ITAA97 s8-5; s8-10
Purpose of Division 25
UTL: Paragraph 9.2
Legislation: ITAA97 Division 25 (skim the titles of the sections in this division).
Repairs
Meaning of repair
Entirety and subsidiary parts
Initial repairs, terminal repairs, and notional repairs
Repairs vs. capital expenditure
Legislation: ITAA97 s25-10
Cases:
Lindsay v FCT (1960) 106 CLR 377
FCT v Western Suburbs Cinemas (1952) 86 CLR 102
Law Shipping Co v IRC (1924) 12 TC 621
W Thomas & Co Pty Ltd v FCT (1965) 115 CLR 58
Tax Office Publications:
TR 97/23: Income tax: deductions for repairs
Borrowing expenses
UTL: Paragraph 9.18
Bad debts
Travel between workplaces
UTL: Paragraph 9.32

Legislation: ITAA97 s 25-100
Case:
FCT v Payne (2001) 202 CLR 93
Purpose of Division 26
UTL: Paragraph 9.34
Legislation: ITAA97 Division 26 (skim the titles of the sections in this division).
Examples of items included in Division 26

Penalties
Leave payments
Related entities
Illegal activities
UTL: Paragraph 9.35 to 9.36, 9.39, 9.42.
Legislation: ITAA97 s26-5, s26-10, s26-35, s26-54
Case:
FCT v La Rosa (2003) 129 FCR 494
Gifts and donations

UTL: Paragraph 9.45 to 9.46
Legislation: ITAA97 s30-15 (and skim Division 30)
Tax Office Publications: TR 2005/13 Tax Deductible Gifts What is a Gift
Entertainment expenses
UTL: Paragraph 9.54 to 9.60
Legislation: ITAA97 s32-5, s32-10, s32-15, s32-30, s32-35, s32-40, s32-45, s32-50
Losses from prior years

Legislation: ITAA97 Divisions 35 and 36
Substantiation of expenses (brief discussion only)

Legislation: ITAA97 Division 28 and Sub Division 900
TRADING STOCK
Basic scheme of provisions

Legislation: ITAA97 s70-15, s70-25, s70-35, s70-40, s70-45
What is trading stock

When is trading stock on hand

Case:
All States Frozen Foods Pty Ltd v FCT 89 ATC 5135
Valuation of trading stock

Cost
Market selling value
Replacement price
Legislation: ITAA97 s70-45, s70-50
Disposals not in the ordinary course of business

Legislation: ITAA97 s70-20, s70-30, s70-85, s70-90, s70-95, s70-100, s70-105,
s70-110
WEEK 7 CAPITAL ALLOWANCES & CAPITAL WORKS

CAPITAL ALLOWANCES & CAPITAL WORKS
Scope of capital allowances regime

Key features of Division 40

UTL: Paragraph 10.5
Legislation: s40-1, s40-25
Meaning of depreciating asset

What is a depreciating asset
Meaning of plant
Boundary between Division 40 and Division 43
Legislation: ITAA97 s40-30, s40-45, s45-10
Case:
Wangaratta Woollen Mills Pty Ltd (1969) 119 CLR 1
Imperial Chemical Industries of Australia and New Zealand Ltd v FCT (1970) 120
CLR 396
Meaning of hold a depreciating asset

Calculating decline in value

Prime cost method
Diminishing value method
Key concepts used in calculating decline in value

Meaning of cost
Meaning of base value, adjustable value, opening adjustable value
Concept of effective life
Legislation: ITAA97 s40-175, s40-180, s40-190, s40-70(1), s40-85, s40-95, s40100, s40-102, s40-105, s40-110
Meaning of taxable purpose

UTL: Paragraphs 10.51 to 10.53.
Legislation: ITAA97 s40-25, s995-1 definition of purpose of producing assessable
income.
Balancing adjustments
Legislation: ITAA97 s40-285, s40-290, s40-295, s40-300, s40-305, s40-310, s40315, s104-20.
Low-value pool (self-study)

Black hole expenditure

UTL: Paragraph 10.87
CAPITAL WORKS
Basic conditions for Division 43 Deductions

Key elements in Division 43

Capital works
Use in the required manner
Date of commencement
Construction expenditure
Construction expenditure area

Pool of construction expenditure
Your area
Undeducted construction expenditure

Legislation: ITAA97 s43-15, s43-20, s43-70, s43-75, s43-80, s43-85, s43-90, s43115, s43-160, s43-165
Calculating the deductions

Consequences of disposal
Legislation: ITAA97 s43-40, s43-250
WEEK 8 PARTNERSHIPS & TRUSTS

Introductory reading for partnerships / trusts / company topics (i.e. taxation

through intermediary entities):
PA*RTNERSHIPS
What is a partnership for tax purposes?

Legislation: ITAA97 s995-1 (definition of partnership)
NOTE: The Partnership Act 1892 (NSW) defines "partnership" as "the relation which
exists between persons carrying on business in common with a view to profit"
Case:
FCT v McDonald 87 ATC 4541
Basic tax treatment of partnership income

Legislation: ITAA36 s90, s91, s92
Derivation of partnership income

Case:
FCT v Galland 84 ATC 4053
Partners salaries and other internal transactions

Case:
Case S75, 85 ATC 544 (see Example 14.1 and 14.2 in UTL)
Tax office publications:
Ruling TR 2005/7: Income Tax: the tax implications of partnership salary
agreements
TRUSTS
What is a trust
What is a trust estate/trustee/beneficiaries for tax purposes

Legislation: ITAA36 s6(1) and ITAA97 s995-1 definition of trustee
Fundamentals of the taxation of trusts

Present entitlement
Legislation: ITAA36 s95A(1), s95A(2), s98(1), s101
Case:
FCT v Whiting (1943) 68 CLR 199
Legal disability
Resident trust estate

Legislation: ITAA36 s95(2)
WEEK 9 TRUSTS / COMPANIES

TRUSTS (continued from Week 8)
Allocating tax liabilities between trustee and beneficiaries

Legislation: ITAA36 s95; s96; s97(1); s98(3) and (4); s98A(1); s98(1); s98(2);
s100(1); s99; s99A; s99B
Difference between trust income and tax income

Legislation: ITAA36 s99B
Case:
Bamford v FCT (2010) 240 CLR 481 / [2010] HCA 10 (High Court Decision)
COMPANIES
Types of corporate tax systems

Classical system
Full integration
Dividend exemption system
Dividend deduction system
Shareholder relief systems
Dividend imputation systems
The company as a tax entity

Definition of company for tax purposes
Public vs. Private companies
Legislation:
ITAA97 s995(1) definitions of "company" and corporate tax entity; s104-230; s16510; s165-12, to s165-13; s26-35
ITAA36 s103A; s109, s65, Division 7A.
Distinctive features of companies for tax purposes

Company tax rate
Payment of tax
Consolidation regime
Underlying beneficial ownership

Residency of companies
Tax losses
Continuity of ownership test
Same business test
Legislation: ITAA97 s165-10, s165-12, s165-13, s165-15, s165-210
Cases:
Avondale Motors (Parts) Pty Ltd v FCT 71 ATC 4101
Lilyvale Hotel Pty Ltd v FCT 2008 2009 ATC 20-094
Tax Office Publications: TR 99/19 (extracted in UTL)
WEEK 10 COMPANIES (CONT)

COMPANIES
Dividend Imputation System

Franking accounts
Franking credits
Franking debits
Legislation: ITAA97 s205-15; s205-25, s205-30, s205-40, s205-45
Franking A Dividend
Frankable distributions
Maximum franking credit
Benchmark franking percentage
Franking period
Over-franking tax
Franking deficit tax
Legislation: ITAA36 s202-30; s202-35; 202-40; s202-45; s202-55; s202-60; s20265; s203-40; s203-45; s203-50(1)(a); s203-50(2); s205-45; s207-50; s203-50(1)(b);
s203-50(2)
Taxation of shareholders
Dividends as income
ITAA definition of dividend
Deemed dividend
Inclusion of dividend in assessable income
Franking credits from shareholder perspective
Tax effects for different categories of shareholders
Treatment of dividends for non-residents
UTL: Paragraphs 13.2 to 13.16; 13.33 to 13.55; paragraphs 18.37 to 18.40
Legislation: ITAA36 s6(1) definitions of dividend paid; s44(1)(a); s44(1A);
s44(1B); s128B(1); s128B(3)(ga)
ITAA97 s995-1 definition of dividend; s67-30; s67-35; s207-20(1); s207-20(2);
s207-70; s207-75
WEEK 11 ANTI-AVOIDANCE / FRINGE BENEFITS TAX

ANTI-AVOIDANCE
What is tax avoidance?

Tax planning vs. tax avoidance vs. tax evasion
Rules that may override tax avoidance arrangements

UTL: Paragraph 17.4
General anti-avoidance provisions

Old anti-avoidance provision: ITAA36 s260
Elements of Part IVA
Red flags of tax avoidance
Tax avoidance penalties
Legislation: ITAA36 Part IVA; Taxation Administration Act 1953 (Cth) Subdivision
284-C (s284-140 to 284-160) (contained in Schedule 1 to the Act)
Cases:
FCT v Peabody (1994) 181 CLR 359; 94 ATC 4663
FCT v Spotless Services Ltd (1996) 186 CLR 404 (High Court decision); see also 95
ATC 4775 (Full Federal Court decision)
FCT v Hart (2004) 217 CLR 216
Specific anti-avoidance provisions

Alienation of personal services income
UTL: Paragraphs 17.19; 17.24 to 17.25; 9.82 to 9.89
FRINGE BENEFITS TAX
Overview / Key design features of Fringe Benefits Tax (FBT)

UTL: 7.1 to 7.7
Definition of fringe benefit

Benefit
Provide
Employer and employee
Associate
Arrangement
In respect of employment
UTL: 7.8 to 7.16

Legislation: FBTAA s 136 (definitions of fringe benefit, benefit, provide,
employer, current employer, future employer, past employer, employee,
current employee, future employee, past employee, salary and wages associate,
arrangement); s 148
Calculating employers FBT liability

UTL: 7.17 to 7.23
Legislation: FBTAA s 5B; s 66
Determining the taxable value of fringe benefits

Contributions by employee
Otherwise deductible rule
UTL: 7.24 to 7.25
Specific types of fringe benefits

Note: You should skim the headings in paragraphs 7.29 to 7.53 to get an overview
of the different types of fringe benefits.
The fringe benefit discussed in depth in the lecture will be car fringe benefits and
expense payment fringe benefits.
UTL: 7.29 to 7.32 (car fringe benefits); 7.37 to 7.38 (expense payment fringe
benefits)
Legislation: FBTAA ss 7 13 (car fringe benefit), s 136 (definition of car), ss 20
20A, 23 - 24 (expense payment benefits).
Exempt fringe benefits

UTL: 7.54
Reconciliation with income tax

UTL: 7.55 to 7.58
Principles of salary packaging (brief discussion)

UTL: 7.60 to 7.61
WEEK 12 GOODS AND SERVICES TAX

NOTE: The GST Act referred to in the legislative references for this topic refers to the
A New Tax System (Goods and Services Tax) Act 1999 (Cth).
Australias GST An Overview

Legislation: GST Act Division 7
Taxable Supply
Legislation: GST Act s9-5, s9-10, s9-15, s102-5
Taxable Importations
UTL: Paragraphs 19.30, 19.47
Enterprise
Legislation: GST Act s9-20, s9-25, s195-1 definition of carrying on
Registration
Legislation: GST Act Division 23, Division 25, Division 54, Division 57, Division 147,
s188-10
Liability for GST

Legislation: GST Act s9-70, s9-75
GST Free Supplies

GST free vs. Input taxed supplies
Food
Health
Education
Exports
Going concerns

Legislation: GST Act s9-30, Subdivision 38-A (Food); Subdivision 38-B (Health);
Subdivision 38-C (Education); Subdivision 38-E (Exports); Subdivision 38-J (Going
concerns)
Input Taxed Supplies

Financial supplies
Residential rents
Residential premises
Fundraising events
Legislation: (You do not need to read these sections in detail, an overview will
suffice): GST Act Subdivision 40-A (Financial supplies); Subdivision 40-B
(Residential rent); Subdivision 40-C (Residential premises); Subdivision 40-F
(Fundraising events)
Non Taxable Importations

Creditable Acquisitions
Legislation: GST Act, s9-5, s11-5, s11-10, s11-15, s11-20, s11-25, s11-30, s2910(3), s29-70, s29-80, s66-5, s66-10, s69-5, s69-10, s111-5, s111-10, s111-15,
s111-20, s111-25

Tabl2751 2016-2

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Tabl2751 2016-2

Diunggah oleh

Hak Cipta:

Format Tersedia

Australian School of Business

Taxation and Business Law

Topic Outlines & Reading Guide

SUMMARY OF TOPICS AND TEXTBOOK CHAPTERS

UTL Chapter Reference

Capital gains tax

Deductions capital allowances / capital

Taxation of trusts (cont)

Taxation of companies (cont)

Goods and services tax

WEEK 1 INTRODUCTION TO THE AUSTRALIAN TAXATION SYSTEM

Competing concepts of income

Income under the ITAA97

Ordinary income vs. statutory income

Ordinary income propositions

Amounts not convertible into money are not ordinary income

Capital amounts do not have the character of income

Amounts received as substitutes for or compensation for lost income are

Gifts unrelated to employment / services / business are not income

Proceeds of gambling and windfall gains are not income

Mutual receipts are not income

To be income, an amount must be beneficially derived

Characterisation in the Hands Of The Recipient

Income generally exhibits recurrence, regularity and periodicity

WEEK 3 INCOME (CONT) / TAX ACCOUNTING

Amounts derived from employment or the provisions of services are income

Amounts derived from carrying on a business are income

Statutory income: non-cash business benefits

Amounts derived from property are income

UTL: Paragraphs 3.61 to 3.66

Statutory income: Royalties

What is tax accounting and the importance of timing

Cash vs. Accruals basis when is each basis appropriate?

Derivation on an accruals basis

Derivation on a cash basis

Profit as assessable income (brief discussion only)

WEEK 4 CAPITAL GAINS TAX

CGT Event A1 disposal of a CGT asset

CGT Event C1 Loss or destruction of a CGT asset

UTL: Paragraphs 6.26 to 6.27

CGT Event C2 Cancellation, surrender and similar endings

CGT event D1 - Creating contractual or other rights

CGT event H1 Forfeiture of deposit (brief discussion)

UTL: Paragraphs 6.89 to 6.98

Cost base of CGT assets

Reduced Cost Base

Pre CGT assets

UTL: Paragraphs 6.124 to 6.146

WEEK 5 DEDUCTIONS GENERAL

General vs. Specific deductions

To the extent that

Incurred vs. necessarily incurred

Nexus requirement in gaining or producing; in carrying on business

Incidental and relevant test

UTL: Paragraphs 8.7 to 818; 8.21 to 8.24; 8.53 to 8.59

Negative limbs - capital

Private or domestic nature

Incurred in producing exempt or NANE income

WEEK 6 DEDUCTIONS SPECIFIC / TRADING STOCK

General vs. Specific deductions

Travel between workplaces

UTL: Paragraph 9.32