Uniformity of Taxation Penalties in Australia

Question: Discuss about the Uniformity of Taxation Penalties in Australia. Answer: Introduction: It has been seen that inspector of the general taxation is seen to be an independent statutory office which is seen to recognize the various types of the issues which are seen to be related to the administrations of the relevant jurisdictions. They are further seen to be doing a reviewing of the various administrations which were seen to be against the principles of good administration of tax. It has been also seen that the inspector general of the tax is responsible for providing independent advice to the government (De Costa et al. 2015). The different types of the powers and the functions of the inspector general of the taxation is seen to be responsible for recognition of the issues which are seen to be related to the problems associated to the administration of the law. The different types of the review of the elements have been able to focus on the various issues related to the managing against the principles of good tax administration. It has been further seen that the general of the taxation is seen to provide independent advice to the government (Byrnes 2015). The powers and the functions of the inspector general of the taxation is seen to be governed as per the legislations shown below as follows: Inspector general of taxation Act 2003 Ombudsman Act 1976 The general inspector of the taxation act 2003 is seen to provide appointment of the inspector general related to the taxation; on the other hand ombudsman Act 1976 is able to fulfil the needs for the appointment in the overseas students ombudsman, postal industry ombudsman and commonwealth ombudsman (The Australia Institute 2013). Based on the taxation rulings TR 2016/3, the main discussion is seen with the views of the commissioner related to the deductibility of the expenses which is seen to be incurred during the maintaining, modifying, acquiring and developing of the website for the purpose of carrying out necessary business activities with the several types of the expenses which are seen to be associated to the names of the domain. The different types of the ruling of the study has been further able to consider the different sources of the intangible softwares which is seen to be related to the intangible software and the further able to consider the software which has been integrated in the websites for using it online by the website user (Bond and Xing 2015). As per the Section 25-45 of the Income Tax Assessment Act 1997, is able to provide the specific deductions which are seen to be associated to incurring of the losses which the taxpayer has been able to incur arising as the a result of theft, misappropriation caused by an employee and embezzlement as a result of stealing (Avi-Yonah 2014). Yes, based on the several assessment it can be stated that an individual can claim the deductions of membership under the association as per section 8-1 and 25-55 of the IT Assessment Act 1997. Here the individual is seen to make a payment to the members of the association and instance of inability to make the payment of satisfaction as per the requirement of section 8-1 of the income tax assessment act 1997. It has been further seen that the taxpayer is allowed with a deduction of maximum amount of $42, during making payments in relation to the individual associations to which the individuals are seen to be belonging(Hana Yussof 2013). The payment for the compensations associated to the loss, compulsory acquisition or destruction is related to the CGT asset, which will give rise to the CGT event. In case the taxpayer is seen to receive the compensation amounting to a loss of trading stock, the payment shall be treated as a capital proceeds from the disposal of assets (Piketty and Saez 2013). Based on the assessment, in case a taxpayer is seen to be having an income of $30,000 in the income year for taxation, the tax rate of 19c with $1 over 18,200 is seen to be applicable for the total taxable income (SMAILES and MCDERMOTT 2013). The different types of the perspective of the taxation have been able to state on the various types of the implication which are seen to be associated to the earned income by the taxpayer. For example, in case a taxpayer of the financial year is commenced from 1st April 2015 to 31 March 2016, it can be considered as per the income year which is seen to be earned by the taxpayer during the end of the financial year which is seen to end until April 2016 until March 2017(Chalmers et al. 2013). As per the section 4-1 of the income tax assessment act 1997 it has been seen that an individual or a company is seen to be accountable for making the income taxable in nature. The total amount of the taxable income is seen to be calculated by subtracting the amount of the total deductions from the sum of the income which is seen to be assessable as per section 4-15 of the ITAA 1997. The assessable income is seen to be categorized statutory income and ordinary income. As per the 6-5 section of the income tax assessment act income 1997, the ordinary concept has been classified under ordinary income. On the other hand, the 6-10 section of the income tax assessment act income 1997, has been able to state that income does not form a component ordinary income(Besley and Persson 2013). As per the ruling of section 6-5 (2) and section 6-10 (4) of the Income Tax Assessment Act 1997, it has been seen that the income is derived from the various types of other sources which are seen to be related to the assessable income. In addition to this, for individual non-resident the individual taxpayer are to be only considered for the assessment derived from the Australian sources. Therefore, it can be stated that residential status of the taxpayer taken into consideration the assessable income along with the computation of taxable income tax. Based on the taxation rulings 98/17 in the 9th paragraph, an individuals status must be ensured based on the facts which are seen to form a vital part of the IT tax liability determination. The definition of an Australian resident as per section 995-1 of the Income Tax Assessment Act 1936, applies to the Australian residents having a place of domicile in Australia(Chardon 2014). The 11th paragraph of the taxation ruling 98/17 has been able to ascertain the ordinary residents representing, that the individuals are seen to be residing permanently in Australia. Based on the case study Julia Jenkins arrived at Australia on 7 January 2017 for a permanent settlement. Therefore, Julia Jenkins has been considered as an Australian occupant for taxation as per the ordinary concept. This has been further seen to be representing an income derived by her which shall be held for tax assessment from the sources confirmed by her (Abdulkarimli 2015). According to section 6-5 of the ITAA 199, the income sourced from the food picking on the two-week stay which should be taken into consideration for the assessable income from the ordinary income. The total purchasing price was seen to be considered from $ 500000, which is paid by Julia for the different items not included by the ordinary income as it has been considered as per the concept of ordinary concept. As per the section 40-30 of the Income Tax Assessment Act 1997, it has been observed that effective anticipation and know the usefulness to fall in the value which should be regarded for the assets which are depreciating. It has been further observed that the depreciation which has been charged against the assets shall be computed by application of either diminishing value method or straight-line method. Based on the present case study, the section 40-70 of the Income Tax Assessment Act 1997 has been seen to apply depreciation with the diminishing method of depreciation which i s used for the taxation purpose. As per the section 8-1 of The Income Tax Assessment Act 1997, based on the depreciation computation(NIEMANN 2013). As per the section 6-5 of the ITAA 1997, the gross sales in form of the part defined by the assessable and the ordinary income. It has been further seen that as per section 8-1 of the Income Tax Assessment Act 1997, the different types of considerations for the expenditure which has been incurred as per the executing the business activities or the assessable income associated to the allowed deduction in the income. Hence, the expenditures and the salaries are based on the general deductions. As per the section 25-25 of the Income Tax Assessment Act 1997, the expenditure associated to the borrowing can be subtracted for the amount which has been taken into consideration form the production of the assessable income(Emerson and Kraal 2014). It has been further seen to be evident from the case study that the borrowings by Julia form the part of the business from the allowed deductions. The incurred expenditure has been further seen to be associated to the management of the vehicle which must be treated as per the perquisite given to the manager and this must be allowed as per the deductions defined by the section 8-1 of the ITAA 1997. The main form of the expenditure related to the conference for the production of the assessable income must allow for the deductions under the aforementioned section. Based on the section 70 -45 (1) the entire Income Tax Assessment Act 1997, the stock in hand is seen to be valued at cost and sale value or replacement at the year ending. It has been further seen to be evident that the present case study, replacement value or the market value is not seen to be provided and the inventory is seen to be valued as per the cost after the year ending. In addition to this, the expenses associated to the managers wife cannot be considered for the deductions. It has been also seen that the loss in the present year as well as the loss arising out of the theft or stealing is seen to be considered as per the section 25-45 of the ITAA 1997, has shown monetary considerations of the assessable income (Coleman 2013). Based on the given case study, a sum of $10,000 was not considered as per the store accounts; therefore it has been not been included under the assessable income. It has been further stated as per the section 28-12 of the Income Tax assessment Act 1997, has been further seen with computing car expenditure and methods for estimating car expenses based on the deductions allowed. As per the section 28-90 of the Income Tax assessment Act 1997, the expenditure of the car is seen to be computed by the log book and multiple of the sum of expenditure made in the car with the total amount used in the business. As per the given scenario the car expenditure deductions has been computed by making use of the cents per kilometre technique this section 28-25 of the Income Tax Assessment Act 1997. As per the section 25-35 of the Income tax assessment Act 1997, the taxpayer is able to deduct the sum of bad debt amount, the given amount has been further seen to be associated to the assessable income f or the current year or the previous year. In the present case the sum has been included as per the assessable income and the deductions have been allowed for the same (Techera and Klein 2013). The statement associated to the taxable income of Julia has been shown below as following: Reference list: Abdulkarimli, O. (2015) Taxation of E-commerce, Baku State University Law Review, 1, pp. 99109. Avi-Yonah, R. S. (2014) Corporate Taxation and Corporate Social Responsibility, NYU Journal of Law Business, 11(1), pp. 129. doi: 10.2139/ssrn.2423045. Besley, T. and Persson, T. 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(2013) Optimal labor income taxation, Handbook of Public Economics, 5, pp. 392474. doi: 10.1016/B978-0-444-53759-1.00007-8. SMAILES, A. and MCDERMOTT, P. M. (2013) The Uniformity Of Taxation Penalties In Australia., Monash University Law Review, 39(1), pp. 213245. Available at: https://search.ebscohost.com/login.aspx?direct=truedb=a9hAN=90278272lang=essite=ehost-live. Techera, E. J. and Klein, N. (2013) The role of law in shark-based eco-tourism: Lessons from Australia, Marine Policy, 39(1), pp. 2128. doi: 10.1016/j.marpol.2012.10.003. The Australia Institute (2013) Coal and gas mining in Australia Opportunities for national law reform, Technical Brief, 24(24), pp. 147.