Description
Australian taxation law workall solution must be correct and must use the correct law and principles in Australia
no plagiarism
Harvard
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Australian Tax Laws
Introduction
Taxation can be considered as a central approach of increasing the income of a particular
nation. In Australia, taxations are meant to pay for both the federal governments and local states.
Tax can be paid either at personal, level or company level (Evans, and Pinto, 2010). Even though
the process of taxation is very beneficial to the state, at company and personal level the process
of taxation does not have any advantage since it does not add any profit making them not willing
to pay. But they are obliged to pay personal tax, service and goods tax, custom duty taxes, excise
taxes, capital taxes and income taxes for the benefit of their state. In such a case, steering of
fraud related to tax is a determinable challenge. To encounter such challenges, Australian
government has developed the Australian Taxation Office (ATO). The ATO has established the
approach of ‘Taxable Payment Annual Report’ which needs to be submitted to the ATO by July
on 21st on annul basis by each individual business.
Taxable income is the income amount which is used when calculating the amount of tax
an individual or a company is owing to the government in a specific tax period. It basically
dictates a gross income or an adjusted gross income which is calculated less any amount of
deductions or any form of exemptions which is allowed in that specific tax period. Taxable
income incorporates wages, tips, salaries and bonuses an also unearned income and investment
income. Taxable income which is sometimes considered unearned income may entail
government benefit, alimony payments and cancelled debts, lottery, and some forms of strike
benefits. Taxable income can be calculated by the use of the following general formula:
Taxable income= Assessable income – allowable deductions
Taxable income again incorporates earnings which are generated from assets which are
appreciated which have been sold out or capitalized within the year and from interest income and
dividends. The amount of your income which is taxable is determine...