For this assignment students are required to find and read in detail 1 article from taxation journals published between 2012 and 2018. A list of 5 appropriate journals is provided below, you must choose an article from these journals ONLY.
The topics that students may choose have to relate to the topics covered in the course. Students are then required to:
• Briefly summarise the issues identified in the article (300 words),
• Provide a critique of the article author/s viewpoint, in other words, provide your point of view
on the issues raised in the article (500 words),
• Write a reflection of what you learnt from reading the article (200 words)
Taxation journals you can use for the assignment include:
• Australian Tax Forum
• Australian Tax Review
• eJournal of Tax Research
• Journal of Australian Taxation
• Revenue Law Journal
Please note you must choose an article from the above-listed academic journals ONLY for the purposes of this assignment.
List of topics
RESIDENCE, SOURCE and DERIVATION
. World income basis (Australia, USA, most countries) compared with territorial basis (Hong Kong) and derived and remittance basis (Singapore and Malaysia) . Global income tax system (Australia, Singapore, Malaysia, most countries) compared with scheduler income tax system (Hong Kong)
. Residence of Individuals – common law and statutory meaning
. Residence of Companies – common law and statutory meaning
. Source of income - common law rules; statutory deeming provisions; employment income, business income, dividend, interest and royalty income
. Exempt Income
. Withholding tax, foreign tax credits, role of double tax agreements
. Derivation of Income – cash and earnings basis; constructive receipt, trading income - deferred payments, payments by instalment; income from professional practices; fees in advance of goods or services; interest, rent, dividends, work in progress
References:
Principles of Taxation Law, Sadiq et al 2018: Chapters 4 and 16
CONCEPTS OF INCOME
. General concepts of income – distinction between income and capital receipts . Income from personal exertion – income from employment or in rendering personal services - gifts, gambling receipts, compensation payments – distinction between income and capital receipts; non-cash benefits received in connection with employment – fringe benefits tax (topic 11)
. Income from personal exertion - income from carrying on a trade or business - common law identification of a trade or business – badges of trade, commerciality; distinction between income or capital receipts, mere realisation of a capital asset or business proceed, gains made outside the ordinary course of a business, compensation payments
. Non-cash benefits received in connection with employment
. Non-cash benefits received in connection a business relationship
References:
Principles of Taxation Law, Sadiq et al 2018: Chapters 5, 6, 7, 8 and 10
CAPITAL GAINS TAX
- Definition of Assets
- CGT events, CGT Assets
- Collectables, Personal Use Assets
- Acquisition and Disposal
- Taxation of Pre-CGT Assets
- Cost Base Rules, Reduced Cost Base
- Calculation of capital gains
- Exemptions, Main Residence rules,
References:
Principles of Taxation Law, Sadiq et al 2018: Chapter 11
ALLOWABLE DEDUCTIONS
. First Limb of section 8-1(1), ITAA97, sufficient nexus, inherent character of the expense,
. Second Limb of section 8-1(1), ITAA97 . Negative Limbs of section 8-1(2), ITAA97 – capital, domestic private expenses References:
Principles of Taxation Law, Sadiq et al 2018: Chapters 12 and 16
SPECIFIC DEDUCTIONS, SPECIFIC NON-DEDUCTIONS, TRADING STOCK AND REPAIRS
. Specific deductions - business expenses, employee expenses, travel expenses, motor vehicle expenses, entertainment expenses, club fees, professional subscriptions, self education expenses, home office expenses, bad debts, theft, misappropriation, borrowing and mortgage discharge expenses, legal expenses, tax-related expenses, rates
. Limit on certain deductions
Specific non-deductions – entertainment and club expenses, fines, past year losses, prior and current year company losses, non-commercial business losses, gifts, payments to associated persons
. Repairs - definition of repairs, subsidiary compared with entirety, improvements, capital issues involving repairs, part private use
. Meaning of Trading Stock
. Accounting for trading stock
. Value of trading stock at start of year and end of year
. Trading stock on hand
Principles of Taxation Law, Sadiq et al 2018: Chapters 13 and 17
CAPITAL ALLOWANCES AND CAPITAL WORKS
. Definition of Depreciating Assets
. Cost of Depreciating Assets
. Car Limit
. Effective Life of Depreciating Assets
. Special Rates of Decline in Value
. Calculating Decline in Value of Depreciating Assets
. Pro Rating the Decline in Value
. Balancing Adjustments on Disposal
. Pooling of Depreciating Assets – low-value pools
. Deductions for capital expenditure on Buildings and Structural Improvements
Principles of Taxation Law, Sadiq et al 2018: Chapter 14
GOODS AND SERVICES TAX
. Overview of GST
. Creditable acquisitions & input tax credits
. GST free supplies
. Input taxed supplies
References:
Principles of Taxation Law, Sadiq et al 2018: Chapter 25