Unit 8: Companies – Part A

Company – a separate legal entity; It can enter into contracts and can be represented in the court of law. Think about taxable income; allowable deduction; derivation of the taxable income; net capital gains. Distributions received by the company; dividend, interest and royalty income; foreign income; bad debts deduction; capital allowance and capital works; blackhole […]

Unit 5: Capital expenditure

Depreciating Assets A deduction for a decline in value is only when there is a depreciating asset. A depreciating asset -An asset that has a limited effective life and can be expected to be declined in value over time. Inclusion/Exclusion The holder of the depreciating asset First element costs – costs that are incurred when […]

Unit 3: Fringe benefits tax (FBT) and employment remuneration

Overview When does FBT apply Benefits outside the scope of FBT and dealt with under the income tax law -Salary or wages -Benefits under employee share schemes -Employer-provided complying superannuation fund contributions -Employment termination payments (e.g. a lump sum paid on retirement) and payments for unused leave -Benefits that are deemed dividends under the ITAA […]

Unit 2: Goods and service tax (GST)

[1]  GST Act is a separate Tax Act that works with the existing Tax Acts  Liability to pay GST to ATO occurs when we make taxable supplies and taxable importations. [remit tax to ATO]  A refund of GST from the ATO relates when we create a credible acquisitions and credible importations. GST Taxable supplies   […]

Unit 1: Australian Tax fundamentals_Part B

Non-cash business benefits – this needs to be converted into ordinary income. The intention is to prevent business trading with one another in goods terms. The amount deemed to be converted under S.21 A ITAA 1936 is reduced by 1) any amount that is a non-cash business benefits will be reduced by one-off deduction 2) […]

Unit 1: Australian Tax fundamentals_Part A

Key Learning Outcomes: Areas you will be focusing on in this Taxation module Based on Legislation ( Statutory Rules) Laws and Principles derived from the court system (Case Law) Calculate the tax payable of a tax entity – Assessable Income (Ordinary Income ; Statutory Income) – Deductions (General deductions ; Specific deductions; deduction to an […]