INCOME TAXATION

Income Tax in Australia



Income Taxation in Australian

The Income Tax Assessment Act, income tax is levied “on the nonexempt financial gain gained throughout the year of financial gain by any individual”. In the case of a natural person, other than a natural person in the capacity of a trustee, tax is imposed on taxable income of a year of income, by the Income Tax (Individuals) Act applicable to that year of income, at rates declared by the Income Tax (Rates) Act. In the case, of a company (other than a company in the capacity of a trustee) tax is imposed on taxable income of a year of income by the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act applicable to that year of income. “Company” is defined in s. 6. It lets in, all bodies or affiliations, collective or unincorporated, but does not admit business concern. (Peters, 2001. 85). Where a person derives income in the capacity of a trustee, save where he derives in the capacity of a trustee of a superannuation fund, tax is levied by section 98, 99 and 99A of Div. 6 of Pt III on the whole of, or a contribution of, “the profit of the trust estate” derived during the year of income. Section 17 would appear to be inapplicable, because the trustee does not derive “taxable income”, though net income of the trust estate is by s. 95 calculated in the manner applicable to the calculation of the taxable income of a natural person, or a company that is not a trustee. The notion of the year of income is in this instance imported by the hypothesis if the trustee were a taxpayer” on which the calculation is made. Tax is imposed by the Income Tax (Individuals) Act applicable to the year of income. Where a person derives income in the capacity of trustee of a superannuation fund, tax is levied by section 121CA, 121CB, 121D, 121DA and 121DAB of Div. 9B of Pt III on income (s. 121CA), income (s. 121CB), “investment income” (s. 121D), and the amount (ss 121DA and 121DAB) of a year of income. An amount on which tax is levied by these sections, other than s. 121D, is by s. 121DC deemed to be “taxable income”, and would for this reason be subject in any case of levy by virtue of s. 17. Tax is imposed by the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act applicable to the year of income. “Year of income” is defined in s. 6. In relative to a party (exclude a party in the capacity of a trustee), it means the financial year next preceding the “year of tax”, or the describing period of time, if any, assumed under s. 18 of the Assessment Act instead of that fiscal year. By s. 6, “year of tax” means the financial year for which income tax is levied. In relation to a person other than a company, and in ...