LAW 1509 Lecture Notes - Lecture 11: Going Concern, Henry Tax Review, Income Tax
3 Jul 2018
School
Department
Course
Professor
INCOME TAX
Compulsory extraction of revenue by government at the end of the financial year
Budget time- allocation of revenue through tax system
Vertical and Horizontal revenue tax system
Sin taxes e.g. tobacco changing peoples decisions on what to do with their money
Assistance to small business e.g. capital gains taxes
Consideration of tax through policy point of view as well as legal e.g. tax
avoidance
Taxation powers granted through Constitution- s51 (2) Commonwealth level
powers to tax- Income tax and GST and fringe benefits tax
State taxation powers- Stamp Duty, Payroll tax and Land tax
Each act regarding tax can only deal with one element of tax
Capital Gains tax e.g. relating to investment properties counted as Income Tax
1936 first comprehensive taxation legislation passed following WW2
GST collected at federal level divided between the states
Tax revues- to compare tax system in Australia to other countries
Reduction of corporate tax rate 30%-27.5%
Henry Tax review- 136 recommendations made but only 1-3 implemented
Tax law mostly case law based because many terms not defined in the act
Definition of business s995-1
Partnership is not a tax payer entity- individual parties have to pay tax on share of
income on partnership not the partnership as a whole paying the tax
Not every business expense is tax deductable
Capital Gains tax- selling property realisation of capital gain
1
Melissa Sparrow (a1668063)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Compulsory extraction of revenue by government at the end of the financial year. Budget time- allocation of revenue through tax system. Sin taxes e. g. tobacco changing peoples decisions on what to do with their money. Assistance to small business e. g. capital gains taxes. Consideration of tax through policy point of view as well as legal e. g. tax avoidance. Taxation powers granted through constitution- s51 (2) commonwealth level powers to tax- income tax and gst and fringe benefits tax. State taxation powers- stamp duty, payroll tax and land tax. Each act regarding tax can only deal with one element of tax. Capital gains tax e. g. relating to investment properties counted as income tax. 1936 first comprehensive taxation legislation passed following ww2. Gst collected at federal level divided between the states. Tax revues- to compare tax system in australia to other countries. Henry tax review- 136 recommendations made but only 1-3 implemented.
