Taxation theory, practice and law Accounting, Finance, SPSS Coursework (Coursework Sample)

Taxation theory, practice and law
Name of the student
Name of the university
Author note
Contents TOC \o "1-3" \h \z \u Question 1 PAGEREF _Toc53402792 \h 3Question 2 PAGEREF _Toc53402793 \h 3Question 3 PAGEREF _Toc53402794 \h 4Question 4 PAGEREF _Toc53402795 \h 5Question 5 PAGEREF _Toc53402796 \h 6Question 6 PAGEREF _Toc53402797 \h 6References PAGEREF _Toc53402799 \h 8
Question 1
Issues:
The roots of Pablo are Portuguese though he works in Australia. The payment to Pablo was made in his Portuguese bank account. He earned revenue of $120,000 in the year. The taxation intent considers various variables which are related to identification of a citizen who is foreigner or resident.
Rule:
In Australia the evolving taxation scheme is related to the higher wages and compensation that the people get. A person can earn up to an amount of $18,000 and still there is no requirement to pay tax. A person is liable to pay tax only if he or she earns more than this amount. As per section 955-1 a person can be considered as an Australian citizen only if he or she qualifies certain situation and conditions mentioned in Income Tax Assessment Act 1997.
* To qualify the condition it is necessary that the person must be living in Australia.
* The accommodation of the person should be in Australia.
* In the latest taxable year the individual should live in Australia for a minimum of 183 days or more.
* As per the Australian superannuation scheme the person should be enrolled in the same.
Application:
The total income of the individual must meet all the following conditions as per section 6-5 Of ITAA 1997.
* The revenue earned should be implicit or explicit in some other country or may be in Australia.
* Rent, wages, interest and other transactions that are usual in nature should be considered as the source of income for the individual.
* The profit that is earned by the international entities is also liable to pay the duty if the profit is earned in Australia.
Pablo is not obliged for Portuguese citizenship test because he is a Portugal resident as per the section 955-1 of ITAA 1997. This concept is very well explained in this section and act. Pablo will not be considered liable for Australian superannuation scheme in spite of the fact that he has lived in Australia for more than 183 days in total. According to the conditions, Pablo will be considered as an internal resident and not an Australian resident. Pablo has earned revenue of $20,000 in the given period. According to section 6- 10(3) of Income Tax assessment Act 1997 the revenue earned by Pablo falls under the category of taxable income. Hence, the income of Pablo is tax liable.
Conclusion:
Legitimate income tax may be considered in case of Pablo. 32.5 % of income tax is payable on an income of $90,000. If the revenue or income is more than $90,000 then the rate of income tax that is applicable will be 37%. The tax liability for Pablo can be calculated in the following way –
$90,000 * 32.5% + $30,000 * 37% = $34,350