This document provides an overview and introduction to income tax concepts for the 2012 tax year. It covers topics such as taxation policy, authority in taxation law, tax reform, an overview of the Australian tax system, income tax rates for residents and non-residents, Medicare levy, tax offsets and rebates, taxable income calculation, and taxation of other entities like companies, trusts and partnerships.
Maximum marginal rate of tax is very complicated topic in Income Tax. This PPT will help you understanding well this topic in a easy and practical manner.
New income tax regime Vs Old Income Tax Regime - what is good for you Husys Consulting Ltd
In this document, we looked at the differences between the New Income Tax Regime and how our old Income Tax Regime. How is it useful for employees. There is a clear difference in using these regimes. Employees are allowed to use any of these.
#hrexpert #hrservices
#labourlaws #payrollmanagement #hrbusinesspartner #eor #peo #hrsupport #hrtechnology
#hrconsulting #gigworkers
#careerstargroup
#smebusiness #hr #hrconsultancy #hrtech
#hroutsourcing #smesector #outplacement
#msme #globalworkforce #payrolling #indiapeo #indiaentry #smesurvival #peoindia #hrcloud #indiapayroll #listing
Follow Husys on :
Linkedin : https://www.linkedin.com/company/143536/
Facebook : https://www.facebook.com/Husys
Twitter : @Husys
Slide Share : https://www.slideshare.net/grhusys/
Any questions can be directed to: reach(at)husys.com Phone : +91-9948078937 (India)
Income tax is generally considered as Complicated subjects, so in this HAND BOOK we covered entire syllabus in such a manner in easiest language that student find it intresting.
In this presentation, we will discuss new slab rates, their comparison with old rates and limitations of the new tax regime.
you can also download the calculator from the below link which helps you to calculate tax liability under both the old tax regime and new tax regime.
https://drive.google.com/open?id=1yYYMEAs0VnEU0M3laHFgT89hXVchm2a2&fbclid=IwAR1QwBW5Cqr2lWXvzVl7hCrA46Pr_J_ZPjJF2MQyOEj5epY6Oleilfgp0bw
Income tax in Australia is the most important revenue stream within the Australian taxation system. Income tax is levied upon three sources of income for individual taxpayers: personal earnings (such as salary and wages), business income and capital gains.
taxes are income of government. india is a developing country, therefore taxes is important source of income to indian government. the majority of taxes which are mostly collected by the government is included in this presentation.
Presentation slides from the Changing Face of SMSF Webinar, presented by Aaron Dunn of The SMSF Academy on 23 May 2013, looking at the latest technical and regulatory issues impacting self managed super funds.
Maximum marginal rate of tax is very complicated topic in Income Tax. This PPT will help you understanding well this topic in a easy and practical manner.
New income tax regime Vs Old Income Tax Regime - what is good for you Husys Consulting Ltd
In this document, we looked at the differences between the New Income Tax Regime and how our old Income Tax Regime. How is it useful for employees. There is a clear difference in using these regimes. Employees are allowed to use any of these.
#hrexpert #hrservices
#labourlaws #payrollmanagement #hrbusinesspartner #eor #peo #hrsupport #hrtechnology
#hrconsulting #gigworkers
#careerstargroup
#smebusiness #hr #hrconsultancy #hrtech
#hroutsourcing #smesector #outplacement
#msme #globalworkforce #payrolling #indiapeo #indiaentry #smesurvival #peoindia #hrcloud #indiapayroll #listing
Follow Husys on :
Linkedin : https://www.linkedin.com/company/143536/
Facebook : https://www.facebook.com/Husys
Twitter : @Husys
Slide Share : https://www.slideshare.net/grhusys/
Any questions can be directed to: reach(at)husys.com Phone : +91-9948078937 (India)
Income tax is generally considered as Complicated subjects, so in this HAND BOOK we covered entire syllabus in such a manner in easiest language that student find it intresting.
In this presentation, we will discuss new slab rates, their comparison with old rates and limitations of the new tax regime.
you can also download the calculator from the below link which helps you to calculate tax liability under both the old tax regime and new tax regime.
https://drive.google.com/open?id=1yYYMEAs0VnEU0M3laHFgT89hXVchm2a2&fbclid=IwAR1QwBW5Cqr2lWXvzVl7hCrA46Pr_J_ZPjJF2MQyOEj5epY6Oleilfgp0bw
Income tax in Australia is the most important revenue stream within the Australian taxation system. Income tax is levied upon three sources of income for individual taxpayers: personal earnings (such as salary and wages), business income and capital gains.
taxes are income of government. india is a developing country, therefore taxes is important source of income to indian government. the majority of taxes which are mostly collected by the government is included in this presentation.
Presentation slides from the Changing Face of SMSF Webinar, presented by Aaron Dunn of The SMSF Academy on 23 May 2013, looking at the latest technical and regulatory issues impacting self managed super funds.
This presentation contain information regarding history of income tax, legal framework, tax collection bodies, types of tax, income tax, canons of taxation and definition for the term assesse, person, previous year, assessment year, income, total income and gross total income and agriculture income as per IT act 1961
Tax Planning Update by Tracy Monroe, CPA. Presented at Cohen & Company's Client CPE Day. Covers business as well as individual tax updates.
www.cohencpa.com
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
2. Week 1
• Summary of Topics – Week 1
• Introduction to Income Tax
– Taxation Policy
– Authority in Taxation Law
– Tax Reform
– Overview of the Tax system
3. Week 1
• Introduction to Income Tax – Resident Individuals
– Responsibility of individual to lodge tax return
– Income tax rates 2011/12
– Tax free threshold
– Income Tax offsets (rebates)
– Tax free threshold
– Medicare Levy
– Tax Offsets / Rebates
4. Week 1
• Other Tax Paying Entities
• Income Tax Equation
• Assessable Income
– Ordinary Income
– Statutory Income
– Status of Residence and
– Source of income
5. Introduction to Income Tax
• What is tax?
• Different things to different disciplines
– Economists
– Lawyers
– Economists
6. Introduction to Income Tax
S. 51(ii) of the Constitution refers to ability of
Commonwealth to raise taxes.
Some features of tax are -
– Compulsory payments
– Payments raised for government purposes
• Payments do not constitute fees for services
rendered
• Payments are not penalties
7. Taxation Policy
Characteristics :
– Emotive Issue
– Need for Tax
– System based on equity and simplicity
– Protect rights and liberties of individuals
– Provide economic growth &
– social infrastructure
8. Taxation Policy
– Overall goal
• Fiscal adequacy
• Political acceptability
• Achievement of Macro-level objectives
• Tax as a Social Process
– Progressive Taxation
– Proportional Taxation
– Regressive Taxation
9. Taxation Policy
• Functions and Objectives of Taxation Policy
– Need for Governments to provide social and merit
goods
– Support where free market does not exist
– Correction of other free market imperfections
10. Authority in Taxation Law
• Statute Law (legislation)
• Case law (common law)
• Practices of the A.T.O.
11. Authority in Taxation Law
Statute Law
– ITAA 36
– ITAA 97
– Taxation Administration Act 1953
– Fringe Benefits Tax Assessment Act 1986
– GST Tax Acts (1999)
12. Authority in Taxation Law
• Appeal Process
– A.A.T.
– Federal Court
– Full Federal Court
– High Court
13. Authority in Taxation Law
• Case Law – Role of the Courts
• Create law in circumstances not covered by legislation
• Interpret statutory legislation with use of
– Acts Interpretation Act 1901 – S. 15AA and S. 15AB
– Literal rule
– Golden rule
– Mischief rule
14. Authority in Taxation Law
• Practices of the A.T.O.
• ATO rulings
– Since 1 July 1992 statutorily binding
– Under self-assessment system these have
moved closer to “formal” law
• Income Tax Assessment Regulations 1997
– Empower Governor General to make
regulations
15. Authority in Taxation Law
• A.T.O.
– Tax Rulings
– Private Rulings
– Public Rulings
– Product Rulings
– Class Rulings
– Oral Rulings
16. Tax Reform
• Tax Law Improvement Project – ITAA97
• Tax Reform project
– GST
– Simplification
• Ralph Review
• Henry review of taxation
17. Tax Reform
• Creation of a Board of Taxation
• New approach to FBT
• Changes to Imputation regime
• More comprehensive and effective rulings
system
• International tax reforms
18. Overview of Tax System
• Income tax system consists of a number of Acts and is
administered by the A.T.O.
– I.T.A.A.
– Income Tax Regulations
– Ratings Acts
– International Agreements
– Taxation Administration Act and regulations
– FBT legislation
19. Overview of Tax System
• Two Income Tax Assessment Acts
currently apply
– ITAA 1936 (Original Act)
– ITAA 1997 – Commencing S. 1.1
• Commenced 1 July 1997
20. Overview of Tax System
ITAA 1997 comprises re-written legislation and there are
six levels of provisions (Sec 2-5):
• Core provisions - checklist
• General provisions
• Specialist Groupings
• Collection of tax
• Administration
• Dictionary of terms and concepts
21. Introduction to Income Tax -
Resident Individuals
Residents of Australia are required to lodge a tax return to
ATO at end of financial year disclosing their ‘taxable
income’
Liability to tax is determined on a year to year basis
Australia’s financial year commences 1 July and ends
30 June
22. Introduction to Income Tax -
Resident Individuals
• Need to determine :
– What is assessable income? (See over)
– What is an allowable deduction?
– What is a tax offset? (See over)
• Allowable deductions
• These will be covered later
23. Income Tax Rates 2011/12
• Income Tax Rates – Resident of
Australia
-Income tax is levied on a progressive basis
(Sec 12-1 Income Tax Rates Act Schedule 7 –
Part 1)
– Medicare levy - 1.5% of taxable income
_ Individuals entitled to tax offsets (rebates)
24. Tax rates 2011/12
• Taxable income Tax % excess:
• $6000 Nil 15%
• $37000 $ 4650 30%
• $80000 $17550 37%
• $180000 $54550 45%
– Medicare levy - 1.5% of taxable income
_ Individuals entitled to tax offsets (rebates)
25. Tax Free Threshold
Individual residents are entitled to $6,000 tax-free
threshold
Tax-free threshold is reduced in certain
circumstances - Rates Act – Sec 16:
• When you become or cease to be a resident of
Australia Tax-free threshold is adjusted - $500 per
month ($6,000 / 12 = $500)
26. Medicare Levy
Resident individuals are liable to pay a
Medicare levy at the rate of 1.5% of
individual’s taxable income Sec 251S(1)(a)
ITAA36
No Medicare levy is payable if taxable
income less than $18839…. 2010/11
Shading in provisions apply where taxable
income is between…. $22164)
27. Medicare Levy
A 1% Medicare levy surcharge is imposed if
taxpayer does not have private hospital insurance.
Surcharge applies to:
• Single individuals with taxable income above
$77,000 pa for 2010/11
• Couples and families with taxable income
above $154,000 pa plus $1,500 for the second
and every subsequent dependent child
28. Tax Offsets / Rebates
Tax offsets are deducted from the net tax payable on ‘taxable income’
Resident individuals are entitled to tax offsets (rebates)
Examples:
• Low income tax offset ( Maximum offset $1500 from 1 July 2011 for
income of $30 000 or less.. BUT It is reduced by 4 cents for every
dollar of income over $ 30 000) ( from 1 July reduces to4 445)
• Dependant tax offsets: spouse $ 2355 ( 2011/12)
• Franking credit (dividend imputation credit)
• ‘Spouse superannuation contributions tax offset’ (Max $540 if spouse
contributes $3,000 and spouse’s assessable income < $10,800 – offset
reduces if above $10,800)
29. Dependant tax offsets
• An Australian resident is entitled to claim a dependant tax offset
(rebate) provided:
1. Taxpayer contributes to the maintenance of a dependant – sec
159J(1)
2. Both taxpayer and dependant are residents of Australia – sec
159J(1)
3. Separate net income of dependant is below statutory amount – sec
159J(4)
30. Dependant Tax Offsets
• Dependant tax offsets adjusted annually for inflation - sec
159HA
Table of rebates – sec 159J(2)2011/12
Class
4. Spouse of the taxpayer $ 2355
5. Child-housekeeper $ 2299
6. Invalid relative $ 864
• NB: Student offset/ dependants notionally retained to
calculate entitlement to other rebates – sec 159J(1A)
31. Calculation of tax payable 2011/12
Joe Brown has a Taxable income of $47,000 for 2011/12 –
he is a resident of Australia
Tax payable – ITAA 97 Sec 4-10(3):
$6,000 X 0% = Nil
$31,000 X 15% = $4,650
$10,000 X 30% = $3,000
$47,000 $7 650
Less
Tax offsets Nil
Net tax payable $7650
32. Calculation of tax payable 2011/12
Net tax payable $7650
Plus
Medicare levy
($47,000 X 1.5%) $705
Tax payable $8,355
33. Non-Residents - Rates of tax 2011/12
Non resident of Australia
Income tax is levied on a progressive basis
(Sec 12-1 Income Tax Rates Act – Schedule 7 Part 2)
Taxable income Tax %Marginal rate of tax
Nil Nil 29%
$37,000 - $80,000 $ 10730 + 30%
$80,001 - $180,000 $23 630 + 37%
Over - $180,000 $60630 + 45%
34. Rates of tax 2011 – Non-residents
• Not liable to pay Medicare levy -Sec 251U(d)
• Not entitled to tax offsets
• Not entitled to tax free threshold - $6,000
35. Introduction – rates of tax: other entities
• Companies
– Rate of tax – 30%
• Complying superannuation funds
– Rate of tax – 15%
• Non complying superannuation funds
– Rate of tax – 45%
36. Partnerships
• Partnerships are not taxed
• Each partner is taxed on his/her share of
Partnership Income…
• eg Tom and Mary are equal partners in a
newsagency partnership which has a taxable
income of $ 100 000 in 2010/11
• Tom will therefore have $ 50,000 taxable
income from the partnership
37. Trusts
• A trustee does not normally pay tax where
the income is distributed to the beneficiaries
• Where a beneficiary receives income from
a trust they are taxed on their share at their
own personal rate
• If income is not distributed the trustee may
be liable to pay tax on the undistributed
income at the top marginal rate of tax
38. The Income Tax Equation
• Assessable income minus allowable deductions
equals Taxable income ( sec. 4-15 ITAA97)
ITAA defines ‘taxable income’ - Sec 4-15
‘assessable income less deductions’
• Tax is levied on taxable income ( sec 4-10(3)
ITAA97)
• 1.5% Medicare levy levied on taxable income
• Tax offsets are deducted from tax payable
39. The Income Tax Equation
Some income is exempt from tax - Sec
6-1(2) …. See later
Therefore need to understand what is
assessable income and allowable
deductions
40. Assessable Income
• ITAA 97 - comprised of
• Ordinary income S 6-5 which is based on case
law and
• Statutory income S6-10 which is based on
specific legislation
• See Guide in S 6-1
• but excludes exempt income S 6-20
41. Assessable Income
Includes:
2. Ordinary income – Sec 6-5:
• Income from personal exertion
• Income from property
• Carrying on a business
3. Statutory income – Sec 6-10:
• Income under specific provisions of ITAA
• Sec 10-5 – summary list
42. Assessable Income
Some Examples :
• Income from personal exertion:
• Salary & wages
• Income from property:
• Interest
• Dividends
• Rent
• Annuities
• Royalties
• Carrying on a business:
• Proceeds from carrying on business (e.g. profits)
43. Ordinary income: section 6-5
• Need to know what is…
• Ordinary income
• Residence of taxpayer
• Derivation of income
• Source of income
• Exempt income
44. Ordinary income
• Is a common law concept
• See defn.Section 6(1) of the 1936 ITAA of
income from personal exertion
• Based on case law
45. Ordinary Income - Principles
• Ordinary income comes in to the taxpayer
• Nexus (link) with income earning activity
• Convertible into money, regular recurrent and
periodic
• Must be a gain
• Includes illegal activities
• Does not include capital gains
• Non cash benefits 26 (e) & S 21A
46. Ordinary income
• Determined according to ordinary concepts
and usages of mankind
• Look at all the circumstances
• Is an objective test
• Determine whether payment is for services
or employment
• Character of receipt in hands of recipient
• Motive of person making the payment
47. Residence
Sec 6-5(2) – Resident
• If you are an Australian resident, your assessable income
includes the ordinary income you derived directly or
indirectly from all sources whether in or out of Australia,
during the year of income
Sec 6-10(4) – Resident
• If you are an Australian resident, your assessable income
includes your statutory income from all sources whether in
or out of Australia.
48. Residence
Foreign Source Income –
Withholding tax
• If Australian resident derives income such as dividends and interest
from overseas sources and withholding tax had been deducted:
• Australian resident must include both the income and withholding
tax as part of assessable income (sec 6AC)
and
• Withholding tax will be allow as a foreign tax credit offset (sec
160AO)
• Maximum permitted limited to Australian tax payable on that
income
49. Residence and Source: ordinary income
Section 6-5(3) – Non-resident
If you are not an Australian resident, your
assessable income includes:
• the ordinary income you derived directly or indirectly
from all Australian sources during the year of income;
and
f) other ordinary income that a provision includes in your
assessable income for the income year on some basis
other than having an Australian source
50. Residence and Source: Statutory income
Section 6-10(5) – Non resident
If you are not an Australian resident, your
assessable income includes:
• Your statutory income from all Australian
sources; and
• other statutory income that a provision
includes in your assessable income on
some basis other than having an
Australian source.
51. Residence
There will be a need to determine:
Whether taxpayer is a resident of Australia
• If a resident, source will generally not be
an issue, as you will need to bring to
account income derived from all sources
whether in or out of Australia
If taxpayer is not a resident of Australia, the
issue is whether income derived is sourced
in Australia
52. Residence
Three statutory tests of residence: S 6(1) ITAA 36:
3. Domicile / permanent place of abode test
4. 183 day test
5. Commonwealth superannuation test
53. Residence
Individuals –
Domicile / permanent place of abode test
Taxpayer lives in Australia:
• Physical presence in Australia
• Business and family ties in Australia
• Family home maintained in Australia
• Personal assets in Australia
Tax Ruling TR 2650 sets out ATO views on tests associated
with residency of Australia
54. Residence
Individuals –
183 day test
• Treated as resident of Australia if in Australia for more than 183
days,
• unless ATO is satisfied,
• that the taxpayer’s usual place of abode is outside Australia,
and
• taxpayer has no intention to take up residence in Australia
Test is predominantly concerned with residency status of people who
visit Australia (e.g students, visitors on holidays)
55. Residence
183 day test
This test determines when a person is
considered to have commenced to be a
resident of Australia
ATO considers ‘a migrant who comes to
Australia intending to reside here
permanently is a resident from arrival’
(Tax ruling TR 98/17 paragraph 16)
56. Residence
Permanent place of Abode
Leading cases
Levene v IRC – (1928) AC 217
A British subject who on medical advice spent the
summers in England and the winters abroad
He had no fixed residence in either the UK or abroad
Held:
• The person was a resident of the UK
57. Permanent place of abode
In Levene’s case it was pointed out:
• A person continues to reside where he has his settled or usual
abode, though from time to time he leaves it for the purpose
of business or pleasure
• A person who has his home abroad and visits the United
Kingdom from time to time for temporary purposes without
setting up an establishment in that country is not considered
to be a resident there
• A man may reside in more than one place
58. Permanent place of abode
FCT v Applegate – 79 ATC 4307
Taxpayer was sent overseas to Villa to establish an office for his employer
Taxpayer’s intention was to remain overseas for an ‘indefinite period’
Taxpayer was accompanied by his wife and he left no assets in Australia
Held:
• Not a resident of Australia
• Important factors such as work, family and location of home were located in
Villa
• Taxpayer’s place of abode was outside Australia
59. Permanent place of abode
Key principles – Applegate’s case:
• Where a taxpayer’s permanent place of abode is located
must be determined annually
• Permanent place of abode does not mean that there should
not be an intention to return in the foreseeable future
• Permanent should be contrasted with temporary or
transitory and it did not mean everlasting
Commissioner’s views on permanent place of abode set out
in Tax Ruling – IT 2650
60. Permanent place of abode
FCT v Jenkins - 82 ATC 4098
A bank officer was transferred to the New Hebrides for 3
years
Returned to Australia after 18 months due to ill health
Held:
• Although taxpayer’s stay overseas was for a fixed term, the
taxpayer was a non-resident, as his permanent place of abode
was outside of Australia (3 year term was considered
significant)
• A taxpayer’s intention to reside outside of Australia does not
have to be for an indefinite period
61. Residence of companies
Statutory test – Sec 6(1) ITAA 1936:
Company is a resident of Australia if:
Incorporated in Australia
If not incorporated in Australia:
Carries on business in Australia and:
• Company’s central management and control in Australia
or
• Voting power controlled by shareholders who are
residents of Australia
62. Residence of companies
De Beers Consolidated Mines v Howe
• A company is normally a resident in the country
or place where its central management and control
are situated
• That place will usually be where the directors
meet to do the business of the company
• This is a question of fact and degree
63. Residence of companies
Esquire Nominees case - 72 ATC 4076
Company was incorporated in Norfolk Island with voting
shares and directorships in Norfolk Island hands
Held:
• As company’s central management and control was in
Norfolk Island it was not a resident of Australia
64. Residence of companies
Malaysian Shipping Co Ltd v FCT
(1946) 71 CLR 156
• In Malaysian Shipping case it was held
if a company’s central management
and control is in Australia, then it must
be carrying on business in Australia
65. Source of Income
No statutory definition of ‘source’ in ITAA
Tests to determine ‘source of income’
1. Place where taxpayer performs services
– Place where contract signed
– Place of payment
66. Source of income – salary & wages
FCT v French – (1957) 98 CLR 398
An Australian resident was employed as an engineer by an
Australian company carrying on business in Australia and
New Zealand
During the year ended 30 June 1951 taxpayer was in New
Zealand for 17 days on his employer’s business and earned
110 pounds during this period (being income from
personal exertion)
67. Source of income
Salary & Wages –
FCT v French
Held:
• Source of 110 pounds was where work was
performed and income was derived from
sources out of Australia
• In the case of wages the source of income is
where the place of employment is performed
68. Source of income – Salary and Wages
FCT v Efstathakis – 79 ATC 4256
Salary paid by the Greek Government
to a Greek national working in Sydney
at the Greek Press and Information
service was taken to have an
Australian source
69. Source of income
FCT v Mitchum – (1965) 113 CLR 401
A film actor normally resides in USA
He entered into an agreement in Switzerland and came to
Australia to act in a film which was partly shot in Australia
He was present in Australia for approx 3 months
The remuneration was paid to him in the USA
70. Source of income
FCT v Mitchum
Held:
• Source of income was outside Australia
• Mitchum was using his creative powers or special
knowledge to such a high degree that the place where those
powers or knowledge was utilised was relatively
unimportant
• Other factors such as where the contact was made
(Switzerland) and place where payment was made (USA)
may be significant for determining the source
71. Source of income
Thorpe Nominees
• If performance is found to be more
important than the making of the contract,
under these circumstances, the place where
the contract is performed may be the only
relevant factor in determining source
• END LECTURES WEEK 1
72. Studying tax!!!
• Expect to
• Attend all lectures and tutorials
• Take good lecture notes!
• Own study time min 5 hours per
week….which involves……
• Reviewing lecture notes
• Reading, highlighting and tabbing
legislation
73. Studying tax
• Reading the reference material from
Foundations of Tax
• Prepare Pre tax questions
• Prepare tax tutorial questions for class
• See your tutor if you need help!
• Anything less you are at RISK!!!!!
75. Useful Reference!!!!!!
Communication Skills Handbook, third edition authored by Jane Summers and Brett Smith 2010 published by John Wiley
& Sons Australia Ltd.
The topics covered include the following:
● Guidelines for Assessment (how to prepare/complete assignments in accordance with what the lecturer requires)
● Referencing and Plagiarism/Collusion (uses Harvard referencing – the Faculty of Law and Management standard)
● Report writing and Case Study Analysis
● Essay Writing
● Oral Presentations
● Examination Techniques
● Job Applications and CV writing
There are five copies on Reserve and two copies available for 3–day borrowing at Bundoora.
76. oasis
• Oasis - Tutorial Enrolments will open at
• 6:00 Thursday 23 Feb
• For help contact the Study Hall:
• studyhall@latrobe.edu.au or 9479 3694.
• Students are to enrol for their semester 1, 2011 tutorials via OASIS
• (Online Automated Scheduling Information Software)
• To enrol into a tutorial
• NOTE: You must have a confirmed enrolment in order to access OASIS.
• Go to the OASIS web page https://www.latrobe.edu.au/oasis
• Select Campus
• Select Student
• Log in by entering your username and password, then click Submit (Same username and password that you use for StudentOnLine).
• Click Select Class
• Select the appropriate School from the drop down menu (Make sure you are selecting the correct School from the drop-down list (e.g. School
of Law for LST2BSL).
• Click Submit
• Select the appropriate Subject
• Click Submit
• Select the tutorial time you wish to enrol in
• Click Submit
• You are now successfully enrolled into the tutorial for that subject
• Click on Student and repeat the above steps for the rest of your subjects
• To see your tutorial timetable, click on View Timetable
• To print your tutorial timetable, click on Print