Solutions to Study Questions Chapter 19
2015 Foundations of Taxation Law
Chapter 19
CAPITAL GAINS TAX
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
A net capital gain is calculated by offsetting the taxpayers capital gains made during
the income year with the t

Solutions to Study Questions Chapter 17
2015 Foundations of Taxation Law
Chapter 17
CAPITAL WRITE-OFFS AND ALLOWANCES
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
Section 40-1 ITAA97 provides that you can deduct an amount equal to the decline
in value of a dep

Solutions to Study Questions Chapter 15
2015 Foundations of Taxation Law
Chapter 15
PROVISIONS THAT DENY OR LIMIT DEDUCTIONS
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
The substantiation rules in Div 900 ITAA97 require individual taxpayers to have
written ev

Solutions to Study Questions Chapter 2
2015 Foundations of Taxation Law
Chapter 2
TAX LAW RESEARCH AND INTERPRETATION
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
The primary sources of tax law are statute law (legislation) and common law
(case law). Taxation

Week 6Allowable deductions: Specific
deductions
Introduction
Last week the material covered the general deductibility provision which starts the
discussion on allowable deductions. This week the material covers specific deductions
which will identify spec

Solutions to Study Questions Chapter 14
2015 Foundations of Taxation Law
Chapter 16
TAX TIMING
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
Assessable income must be attributed to a particular income year in order to
calculate the taxpayers taxable income for

Solutions to Study Questions Chapter 4
2015 Foundations of Taxation Law
Chapter 4
AUSTRALIAN TAXES
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
In Australia, the earliest taxes were in the form of customs and excise duties
introduced in 1902. There were also l

Solutions to Study Questions Chapter 3
2015 Foundations of Taxation Law
Chapter 3
CONSTITUTIONAL FRAMEWORK OF THE
AUSTRALIAN TAX SYSTEM
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
Sovereign power is said to be shared between the central or Federal Government

Solutions to Study Questions Chapter 14
2015 Foundations of Taxation Law
Chapter 14
SPECIFIC DEDUCTIONS
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
This answer has been divided into separate discussions according to the nature of
each type of expenditure.
Tax

Solutions to Study Questions Chapter 9
2015 Foundations of Taxation Law
Chapter 9
RESIDENCE AND SOURCE
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
Fundamental concepts associated with the Australian income tax system are the
concepts of residence and source.

Solutions to Study Questions Chapter 16
2014 Foundations of Taxation Law
Chapter 16
EXEMPT INCOME AND NON-ASSESSABLE NONEXEMPT INCOME
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
It is important to distinguish between exempt income and non -assessable nonexemp

Solutions to Study Questions Chapter 24
2014 Foundations of Taxation Law
Chapter 24
COMPANIES
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
A company is a private company if it is not a public company for the relevant
income year s 103A (1) ITAA36.
Therefore, i

Week 3Assessable, exempt and NANE
income
Introduction
The previous module discussed the preliminary concepts of assessable income looking at the concepts of
residence, source and derivation. This module moves on to look at what amounts actually constitute

Solutions to Study Questions Chapter 13
2015 Foundations of Taxation Law
Chapter 13
GENERAL DEDUCTIONS
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
Section 8-1 ITAA97 has two positive limbs a loss or outgoing will be deductible to
the extent that it is:
incurr

Solutions to Study Questions Chapter 10
2015 Foundations of Taxation Law
Chapter 10
ORDINARY INCOME
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
A taxpayers assessable income will include any ordinary income as per s 6-5
ITAA97. However, ordinary income is not

Solutions to Study Questions Chapter 12
2014 Foundations of Taxation Law
Chapter 12
ORDINARY INCOME
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
A taxpayers assessable income will include any ordinary income as per s 6-5
ITAA97. However, ordinary income is not

WEEK4
ASSESSABLEINCOME:
STATUTORYINCOME
CAPITALGAINS
TRADINGSTOCK
RECOUPMENT
Developed by Jenny Butler
LAWS 19033 - Taxation Law
and Practice A
1
Whatiscapitalgainstax?
WhatisaCGTevent?
Howdowedetermineacapitalgainorloss?
Whataretheimportanttermsthat

Week 4Statutory income: Capital gains;
trading stock; recoupments
Introduction
Section 610 of the ITAA 97 includes in assessable income amounts which are not ordinary income but are
statutory income. This module considers some of these amounts.
The first

Solutions to Study Questions Chapter 10
2014 Foundations of Taxation Law
Chapter 10
INCOME TAX LIABILITY
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
The basic formula for calculating a taxpayers income tax liability is set out in s 410(3) ITAA97 as:
Income ta

Week 7Tax rates, tax offsets and the
Medicare levy
Introduction
This material covers the final step in the calculation of tax payable using the taxing formula. This step involves
the allowance of tax offsets, which are deducted directly from tax payable,

Week2
ASSESSABLEINCOMERESIDENCE,SOURCE
ANDDERIVATION
Jenny Butler
LAWS 19033 - Taxation Law
and Practice A
1
S65ITAA97Whataretherequirementsfor
assessability?
Whataretherequirementsforresidenceof
Australiafortaxpurposes?
Howdowedeterminethesourceofaninc

Week 8Taxation of companies
Introduction
In this weeks material, the taxation system as it applies to companies will be studied, with differences drawn
between the individual and company tax determination and operation.
Objectives
On completion of this we

Solutions to Study Questions Chapter 27
2014 Foundations of Taxation Law
Chapter 27
TAX LOSSES
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
Under Div 36, a tax loss is worked out by adding up the amount of the taxpayers
deductions for the income year (excludin

Solutions to Study Questions Chapter 28
2014 Foundations of Taxation Law
Chapter 28
CORPORATE AND TRUST CARRY FORWARD TAX
LOSSES
SOLUTIONS TO STUDY QUESTIONS
QUESTION 1
Companies are subject to rigorous and complex anti-avoidance measures
designed to prev

Week3
Assessableincome,exemptincome
andNANEincome
Developed by Jenny Butler
LAWS19033 Taxation Law
and Practice A
1
Whatisordinaryincome?
Howdowedefineitandwhataresome
examples?
Whataresomeofthecategoriesofincome?
Whatisexemptincome?
Whatisnonassessab

WEEK6
ALLOWABLEDEDUCTIONS
SPECIFICDEDUCTIONS
Updated by Jenny Butler
LAWS 19033 Taxation Law
and Practice A
1
Whatisarepair?
Howcanwetellthedifferencebetweenarepair
andanimprovement?
Whataretheconditionsthatneedtobesatisfied
todeductabaddebt?
Whatisade

WEEK5
ALLOWABLEDEDUCTIONS
GENERALDEDUCTIONS
Developed by Jenny Butler
LAWS 19033 Taxation Law
and Practice A
1
Whatarewetalkingaboutwhenwesaythereare
positiveandnegativelimbstos81ITAA97?
Whataretheselimbsanyway?
Whataresomeoftheparticulartypesofdeductio

WEEK7
TAXRATES,TAXOFFSETS,
ANDTHEMEDICARELEVY
Developed by Jenny Butler
LAWS 19033 - Taxation Law
and Practice A
1
Whatarethecurrenttaxratesforindividuals?
Howdowecalculatetaxpayableusingthesetax
rates?
Whatisataxoffset/rebate?
Whataresomeofthedifferen

WEEK8
TAXATIONOFCOMPANIES
Developed by Jenny Butler
LAWS 19033 - Taxation Law
and Practice A
1
Whatisacompany?
Whatisthedifferencebetweenapublicanda
privatecompany?
Howdowecalculatetaxpayableforcompanies?
Whydowehavetoreconcilenetprofittotax
payableand

LAWS19033 Taxation Law and Practice A
Week 4
Assessable Income
Statutory Income
Capital Gains
Trading Stock
Recoupment
LAWS19033 Taxation Law and Practice A
Lecture Outline
What is capital gains tax?
What is a CGT event?
How do we determine a capital g

LAWS19033 Taxation Law and Practice A
Week 2
Assessable Income Residence, Source and
Derivation
LAWS19033 Taxation Law and Practice A
Lecture Outline
S6-5 ITAA97 What are the requirements for assessability?
What are the requirements for residence of Austr

LAWS19033 Taxation Law
and Practice A
Week 1 Introduction to Revenue
Law in Australia
Lecture Outline
Why do we need taxes?
How have Australian taxes evolved over
the years?
How can we tell if a tax system is a good
tax system?
Where do we get our tax

LAWS19033 Taxation Law and Practice A
Week 3
Assessable income, exempt income and NANE income
LAWS19033 Taxation Law and Practice A
Lecture Outline
What is ordinary income?
How do we define it and what are some examples?
What are some of the categories of

LAWS19033 Taxation Law and Practice A
Week 5
Allowable Deductions
General Deductions
LAWS19033 Taxation Law and Practice A
Lecture Outline
What are we talking about when we say there
are positive and negative limbs to s8-1 ITAA97?
What are these limbs