Assessment 1 of BLO2206 Taxation Law and Practice Topic:Distinguishing a hobby from a business‚ explaining how legislation and case laws determines whether an activity is a business or hobby. Further to make a comment on the impact of a determination by the ATO on whether a taxpayer’s activity is actually a business. Distinguishing a Business from a Hobby Activities are classified in terms of a business or a hobby and it is important that the two are separated. The difference
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Fairness in the American Taxation System The hot topic in America right now is taxation. While many members of society believe the current taxing system is fair‚ others believe it is not. The President‚ congress‚ and the senate try their hardest to work together to please the entire population with all of the reforms they make. Not only is paying taxes mandatory for American citizens‚ it is a public duty. The reason people are required to pay tax is because the government uses the money collected
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Wage Wage is the fixed amount of compensation for service rendered covering a fixed period of time‚ usually hours‚ or fixed amount of work. It is usually a compensation given to skilled and unskilled labor. Commission is usually a wage given to skilled and unskilled labor. Commission is usually a wage given to a salesperson based on the amount of his sales. This amount is usually added to basic salary. Bonus is given to simulate employees to work more efficiently and effectively (Valencia &
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Why Should You Study Taxation? The tax law affects every individual and every organization. They rely on tax professionals to help them comply with the tax law‚ plan to reduce their tax burden‚ and resolve any tax controversies with taxing authorities. Auditors rely on tax professionals to help them determine a company’s income tax expense and income tax liability. Taxing authorities‚ such as the Internal Revenue Service and state departments of revenue‚ rely on tax professionals to help them
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1.The Dumonts are in the early years of the accumulation of wealth stage of the financial life cycle. During this longest stage of the life cycle‚ the Dumonts will establish their lifestyle and build a foundation for the two later stages. This phase is characterized by: 1. The Dumonts are in the early years of the accumulation of wealth stage of the financial life cycle. During this longest stage of the life cycle‚ the Dumonts will establish their lifestyle and build a foundation for the two later
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CLAW3201 Case Analysis Introduction In Crown Insurance Services Ltd v Commissioner of Taxation (Crown)‚ the issues raised are pertinent to the residence and source of the company under s6(1) of the Income Tax Assessment Act 1936. As cases are determined on the basis of all relevant facts and circumstances of each case‚ this analysis will focus on how the court’s decision process determined whether Crown had carried on business in the years 2004-2007 inclusive and the existence of central management
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Tutorial 4 Bullet Point Summary Question 1-Income Derived from a Business Is the $10 000 cash rebate income under CB1 of the ITA 2007? CB1: * Income of a business is taxable unless it is of capital in nature * Capital Revenue Distinction Relevant Cases: * Wattie v CIR * Birkdale Service Station Ltd v CIR Facts to Consider: * No obligation to spend the rebate on anything in particular * Gas n Go already bound to an exclusive agreement with Caltex * Used to repaint
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Tax 2 Test 3 Multiple Choice Identify the choice that best completes the statement or answers the question. _D___ 1. Which of the following are organizations exempt under § 501(c)(3)? a. Girl Scouts of America. b. Washington and Lee University. c. Veterans of Foreign Wars (VFW). d. Only a. and b. are § 501(c)(3) organizations. e. All of the above are § 501(c)(3) organizations. __D__ 2. Which of the following is a requirement for exempt status? a. The organization does not exert
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CHAPTER 10 PAYROLL TAXES Discussion Questions 1. What type of compensation is subject to employer withholding? Answer: Wages subject to withholding include all pay given to employees for services performed. The wages include salaries‚ vacation allowances‚ bonuses‚ commissions‚ and possibly fringe benefits. 2. Who completes Form W-4 and what is its purpose? What information does it provide to employers? Answer: The Form W-4 is completed by the employee at the beginning
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UK/INDIA DOUBLE TAXATION CONVENTION SIGNED 25 JANUARY 1993 Entered into force 25 October 1993 Effective in United Kingdom from 1 January 1994 in respect of petroleum revenue tax‚ from 1 April 1994 for corporation tax and from 6 April 1994 for income tax and capital gains tax Effective in India from 1 January 1994 Double Taxation Agreements are reproduced under the terms of Crown Copyright Policy Guidance issued by HMSO. CONTENTS Article 1 (Scope of the Convention) Article 2 (Taxes covered)
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