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 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

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 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

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 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 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

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

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

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,

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

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

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

(a) At ACME Rivet & Machine Company a process produces 20% defective items.
Quality system managers are analysing how to improve the process. If we take a
sample of 15 items, give the probability that we will find the following:
1
(i) Exactly one defectiv

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

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

1 Week 1Introduction to revenue law in
Australia
Introduction
In all modern economies, governments fund their activities through taxation and by borrowing, and in some
cases by carrying on profit making commercial activities. Such funding is required to p

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

1
Queensland University of Technology
Faculty of Business
School of Accountancy
AYB 219 Taxation Law
Week 5 - Additional Answers
Semester 2, 2010
ALLOWABLE DEDUCTIONS
SPECIFIC PROVISIONS
Question 1:
(a)
The issue of repairs is covered in Section 25-10 of