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8 (Income Tax Formula and Tax Base)[1]

Nature of ordinary income determined under the common

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Nature of ordinary income determined under the  common law Examples of ordinary income: Salary or wages Ordinary business receipts Interest Rent
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Foundations of Taxation Law [¶8.3](d) © CCH Australia Limited Statutory income Statutory income Statutory income consists of amounts that are  included in assessable income under specific  provisions in the ITAA36 or ITAA97 Checklist contained in Div 10 ITAA97 Examples of statutory income: Annuities Work in progress payments Net capital gains Dividends Franking credits
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Foundations of Taxation Law [¶8.3](e) © CCH Australia Limited Exempt & non-assessable non- Exempt & non-assessable non- exempt income exempt income Assessable income does not include ordinary income  or statutory income that is:  Exempt income – ie income made exempt by a  provision in the ITAA36, ITAA97, or another  Commonwealth law (see Checklist in Subdiv 11-A  ITAA97)  Non-assessable non-exempt income – ie income  stated to be NANEI by a provision in the ITAA36,  ITAA97, or another Commonwealth law (see  Checklist in Subdiv 11-B ITAA97)
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Foundations of Taxation Law [¶8.3](f) © CCH Australia Limited Deductions Deductions Deductions General deductions Losses or outgoings that satisfy the requirements of the general deduction provision in s 8-1 Specific deductions Losses or outgoings that satisfy the requirements of a specific deduction provision (Checklist in Div 12 ITAA97)
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Foundations of Taxation Law [¶8.3](g) © CCH Australia Limited General deductions General deductions General deduction provision contained in s 8-1  ITAA97 Allows deductions for losses and outgoings to the  extent they are: Incurred in gaining or producing the taxpayer’s  assessable income, or  Necessarily incurred in carrying on a business 
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Nature of ordinary income determined under the common law...

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