MLC101 Study Guide - Final Guide: Double Taxation, Myer, Owen Dixon
Document Summary
Week 1: tax payable = (taxable income x tax rate) tax offsets, taxable income = assessable income allowable deductions. Ta(cid:454) = a fi(cid:374)a(cid:374)(cid:272)ial (cid:272)ha(cid:396)ge o(cid:396) othe(cid:396) le(cid:448)(cid:455) i(cid:373)posed o(cid:374) a(cid:374) i(cid:374)di(cid:448)idual o(cid:396) legal e(cid:374)tit(cid:455). (cid:862)a pe(cid:272)u(cid:374)ia(cid:396)(cid:455) (cid:271)u(cid:396)de(cid:374) laud upon individuals or property to support the government. U(cid:374)paid ta(cid:454)es gi(cid:448)e (cid:396)ise to (cid:272)i(cid:448)il pe(cid:374)alties o(cid:396) (cid:272)(cid:396)i(cid:373)i(cid:374)al penalties sometimes. Vertical equity = persons that are in different financial positions are to be treated differently. Horizontal equity = people in similar positions are to be treated similarly. Ease in which a taxpayer may comply with the act and authorities ability to administer and collect the tax. Will be able to predict the amount of tax. Efficiency: administratively efficient: ta(cid:454)es should(cid:374)(cid:859)t ske(cid:449) (cid:396)esou(cid:396)(cid:272)e allo(cid:272)atio(cid:374) a(cid:272)(cid:396)oss the e(cid:272)o(cid:374)o(cid:373)(cid:455). that will be collected in a particular year. Cost of administering and complying with tax acts should be minimised: neutrality: says the taxtion system should not influence decision making in the market place.
