AYB320 Lecture Notes - Lecture 3: Income Tax Assessment Act 1936, Foreign Tax Credit, Dividend Imputation
Document Summary
A company is defined in as: (s 995-1 itaa 1997) Any unincorporated association or body of persons, but does not include a partnership. (a) (b) Includes a club, association or society (including non-profit) A company is a separate legal entity: hence, it has a taxable income. It pays income tax in its own right on its taxable income. In the company tax return, the company includes its assessable income and deducts its allowable deductions on the basis that it is a resident taxpayer. Includes both australian and foreign-sourced income and deductions. Control of the company"s assets can be separated from the distribution of income; Different dividends can be paid on different types/classes of shares; Companies may have different rebate/offset entitlements from individuals; Companies can claim a deduction for salaries paid to all employees including owners and superannuation contributions paid on behalf of all employees including owners; and.
