Week 01 LEGT2751 Notes
1.4 INCOME TAX FORMULA AND CALCULATION OF TAX PAYABLE ss4, -5, -10, -15 - Shows how to calculate tax, and who should pay tax s36-10 - Explanation of a tax loss s251S – Medicare levy
Tax formulas [2.2-2.3] income tax = (taxable income x tax rate) – tax offsets
• Tax offsets – eg imputation credit from share trading, listed in s13-1
taxable income = assessable income - deductions
• Assessable income = ordinary income – statutory income o Ordinary income s6-5 – assessable income according to ordinary concepts o Statutory income s6-10 – assessable income according to provisions • General deduction – s8-1, specific deductions – s8-5
Types of income [2.14] • If an amount is both
…show more content…
Common law test – focus on where on resides
2. domicile test – born here, or shows intention of permanent stay
3. 183-day stay test
4. superannuation test
• residency determined on an annual basis
Residency of companies • co is incorporated in AUS • carries on business in AUS + central mgmt and control in AUS • voting power controlled by residents in AUS
Income Source Rules • wages, salaries and contractual payments o based on where work is done, not where contract is executed/payments • income from trading activities o based on place of the sale contract • interest o place where credit is provided
1.6
The validity of the tax here is related to the benefit Δ receives from access
There is strong controversy regarding whether casual wear should be allowed in the workplace. The disagreement between the two articles read, “Dressing for Creativity” and “The Myth of Casual Friday,” questions if attire can affect one's productivity or if it is a form to inspire one's confidence and talent. Although both articles have different points of views, I believe that one’s attitude towards work goes far beyond attire and more into one’s own personal moral code and values.
Hoffman, W., Maloney, D., Raabe, W., & Young, J. (2013). Federal Taxation Comprehensive Volume. (36 ed.). Ohio: South-W
Ken reported the following financial information this year. Assume Ken’s modified adjusted gross income for purposes of the bond interest exclusion and for determining the taxability of his Social Security benefits is $70,000 and that Ken files as a single taxpayer. Determine Ken’s 2009 gross income.
Mention name and relation with the dependent. Use separate line for each dependant. Calculate total exemption for dependant on line 10. Add values from line 7 through 10 on line 11 and copy the amount on line 32.
Use the following format for your essay. It is based on the grading rubric structure. Identify the item in the appropriate rubric area and then present your reasoning in a paragraph for each tax decision you have made. Use as much space as necessary in each category. (The task instructions give a suggested total length of 2-5 pages.
"Two-Earners/Multiple Jobs Worksheet" on Page 2 of Form W-4 to determine the number of withholding allowances
16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income
(TCO B) From the information given below, determine Marcie's gross income for tax purposes. Salary $40,000 Interest (checking account) $50 Cash received as birthday gift $900 Dividends (mutual funds) $500 Inheritance received on father's death $22,000 Cash received from insurance for accident
An amount equal to 90% of the tax for the taxable year calculated by annualizing the taxable income received for the months in the taxable year ending before the month which the installment is required
The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose
Tax policy: I will need to look at certain levels of tax. If tax is
Tax system is a legal system of imposing and collecting taxes from the citizens of the country. As it has been stated by Albert Einstein, the hardest task in the world is to understand the tax system of a country. The United States’ tax system is so complicated that its tax code contains almost 3 million words and 6,000 pages. Moreover, the taxes implied by city and state governments add more complexity to the federal taxation system. In this case, we do not need to understand the complexity of tax code system in order to get acquainted with the significant role of taxes in American society.
The information that I am currently learning right now in my tax class will help greatly as I
Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.