Clements and Taxation Taxation Law

Question: Describe about the Clements and Taxation for Taxation Law. Answer: Case study 1: Residence and source Fred does not reside or is domiciled in Australia hence for the purpose of assessment of tax his residency will be determined based on the statutory tests. Under the Australian Taxation law, an individual is determined to be a resident for the purpose of taxation as per the statutory requirements mentioned under Section 6 of ITAA (1996). Section 6 lays down the following test for the determination of resident for the purposes of taxation: Domiciled in Australia: the individuals domicile is in Australia. 183 days requirement: the individual resides in Australia for more than 6 months, either for a continuous period or intermittently period in an income year. However this condition is subject to the intention of the individual, whether he intends to reside in Australia or not and his usual place of abode is outside Australia. If either through his actions or intention he does not wish to reside in Australia or his usual place of abode is outside Australia then he is not a resident for the purposes of taxation. Superannuation Scheme: if the individual is a member of the superannuation scheme in Australia then he is a resident of Australia for tax Assessment. In the given situation Fred is a resident of Australia for taxation purposes as he falls under the second test laid down in the Income Tax Assessment Act, which is the 183 days test. Since Fred resides in Australia for a period of 11 months consecutively, he fulfils the condition of residing in Australia for more than one-half of the income year. Here the income year is not the calendar year but the year when the income is actually earned. In Clemens and Commissioner of Taxation [2015], it was stated that the assessee must be physically present in Australia for more than 183 days in an income year to be resident of Australia. Herein, Fred being a British citizen has come to Australia with the intention of residing in Australia, although the period of residence is not fixed, but his intention is apparent from the fact that he has come to Australia to set up a branch of his company (Ato.gov.au, 2015). Also he rents his family home and brings along his wife too which shows that he intends to stay for a long duration, because if that was not the case then he would have left his wife with his children. The usual place of abode is not the permanent place of residence, as was held by the administrative tribunal in Jaczenko and Commissioner of Taxation, [2015]; it is the current or the habitual place that is considered as the usual place of abode. In this case also, Freds usual place of abode is in Melbourne as he has leased a property for 12 months which shows his intention of habitual as well as current residence. Although Fred has a family home outside Australia, still his place of abode will be determined by his usual place of abode. Therefore, Fred is a resident for the purposes of tax assessment and the income he gains from renting out the family home and other interest accrued from his investments in France, he shall pay taxes in Australia for that income gained. Case study 2: Ordinary Income Californian Copper Syndicate Ltd v Harris (Surveyor of Taxes) (1904) 5 TC 159: This judgment clears the concept of assessment of tax in case of sale proceeds from a land or building. As a principle when an ordinary investment is realised the gain received from the difference in value is not considered as profit and is only an ordinary income and not a capital gain. However, gains from realising securities are considered as capital gains as they are profits earned in the ordinary course of business. Lord Justice Clerk explained the scheme of capital gains, and states that there is a very slight difference between the above two situations and in each case the situation is to be determined based on the idea of whether there is an enhancement of value by mere realisation or change in investment or whether there is a gain while carrying out a profit making activity. The case discusses in general the assessing of income generated from sales proceeds of land/ building. The ratio of the judgment was that in order to assess taxability it is to be first seen whether the profit is in the nature of income falling under the category of capital income/gains. It was held that if the sale of the building/land is not for the purpose of business, i.e. the sales is not in ordinary course of business for profit making motive and is only a realisation from sales due to enhanced value meant for further investment and not for profit making then the character of the gain so received is not a capital gain or income but only an ordinary income under the Income Tax Act. Scottish Australian Mining Co Ltd v FC of T (1950) 81 CLR 188 It was submitted by the respondent that the income that was generated from sale of land belonging to the company was an income that falls under either section 6 or Section 24, which are the incomes generated not for profit making purposes or in the ordinary course of business arising from carrying out of the business. The business of the respondent company as evident from its memorandum was of mining, the sale and other activities were only a part of the business in order to fulfil its final work of mining. The court held that, the Lambton lands were bought for the purpose of coal-mining and not for profit making by sale of the land. It was only after the purpose of coal-mining became redundant, that the respondents started to sell the land. The mere sub-division of the land before selling it and was only a method of using the land to its advantage, which is not the same as profit making in the ordinary course of business of sale of land. The construction of railway lines, parks and other amenities are only a part of the advantage that the company was trying to seek, as sub-division is not possible without that. Hence, it cannot be said that the sale of land by the respondent was for the purpose of profit making rather it was only for realisation of the land. Therefore the income generated would fall under the category of Section 6 of the ITAA as in order to fall under section 26, it falls out of the ambit of carrying on or carrying out for profit making by sale. FC of T v Whitfords Beach Pty Ltd (1982) 150 CLR This is a case that establishes the principle that not every sale wherein the magnitude of proceeds is high can be said to be as a profit assessable under section 26 of ITAA. Here, the taxpayers had bought the land for the purpose of securing entry for its shareholders to the shacks at the beachside. Later on the land was developed by the shareholders into residential areas and was developed for the same purpose and there was a residential subdivision of the said land. The sales of the same generated huge profits, but the intention of the taxpayer while buying it or while selling it was not for the purpose of profit. It was held that the degree of proceeds is not the parameter on which the assess ability shall be governed but what happens to the land in the course of conducting the business that would be the subject of assess ability. In the present case the development of the land and its sale was considered as mere realisation of the land, assessable under Section 25 of the ITAA. Statham Anor v FC of T 89 ATC 4070 In this case the court held that there was only realisation of land and the tax-payers were trying to sell of the land in the most advantageous way for them. This conclusion was derived at after thorough consideration of the facts that the tax-payers bought the land for the purpose of farming, they later tried to sell off the land in one lot but were unable to do so, they did not engage into commercial activity of selling the land by employing brokers, working, developing site office etc, they continued with their respective professional tasks, they only subdivided the land in order to make the most out of the sales. Also none of their actions were in the nature of profit making by sales nor were they professionally involved in land development in the ordinary course of business. Hence, merely shifting from farming to development of land for selling it in order to take advantage does not amount to profit making under section 26, rather in the present case it was only realisation of t he capital asset and is an income under Section 25 of the Act. Casimaty v FC of T 97 ATC 5135 In this case there were 5 applications before the court for reviewing the decision of the Commissioner of Taxation disallowing objections of the applicant to amended assessments of tax in 1987, 1988, 1989, 1990 and 1991 stating that successive subdivisions of the property Acton View occurred in the course of carrying on a business. The issue for determination was whether the subdivision and sales were undertaken as part of conduct of business such that the profits are accessible under Section 25(1) of The Income Tax Assessment Act, 1936 or under second limb of S. 25A of the Act. The Court decided in favour of the taxpayer being influenced by factors that apart from activities necessarily undertaken to obtain approval for subdivision, he did nothing to change the purpose of Acton View and used it as residence and conducted the business of a primary producer. Also, he did not acquire any other land to add to his stock suggesting that he did not carry a business of lands. Also, though h e worked in partnership with his wife and son, he made no attempt to bring Acton View as a partnership asset, considering the fact that subdivisions were undertaken only to meet debts and problems of deteriorating health. Thus the taxpayer carried no business of land and thus the appeal was allowed that each assessment be remitted to reassessment in accordance with these reasons. Moana Sand Pty Ltd v FC of T 88 ATC 4897 In this case, the applicant (the company) appealed against the decision of the Administrative Appeals Tribunal where the Tribunal disallowed the objection of the company to the Commissioners claim of bringing to tax $ 500,000 less the cost of land and other expenses wherein the land owned by the company was resumed. Here, the tribunal decided that $ 370,000, less costs and expenses, should be bought to tax for 1980 since only the aforesaid amount was paid in this year. The principal of this company is Mr. Roche to whom the land was transferred in 1951 as nominee for a family syndicate. The land has many sandhills on it. The company, incorporated in 1955 contained in its MOA the only object to acquire lands for the purpose of carrying on business of working on/or selling the sand thereon. The tribunal came to the conclusion on the basis of the evidences before it that the company while acquiring the land had the predominant purpose of working on/selling the sand on it while secondary to it, was the purpose of selling the land for profit when the time became ripe for subdivision and thus held the income taxable under Section 25(1) according to ordinary concepts and usages and the second limb of 26(a) which says that assessable income of a taxpayer should include profit arising from the carrying on or carrying out of any profit making undertaking or scheme. Before this Court, the interpretation of the tribunals findings were disputed. The Court critically analysed the tribunals findings and concluded that the company had a twofold purpose in mind while acquiring the property and held the income taxable under S.2 5(1) and second limb of S. 26(a). Turning to 26(a), it said that it was not required that the second limb only apply when the profitable resale was the dominant purpose, it just has to be a purpose in mind. Also, it distinguished the case from the Kratzmanns case because unlike it here although due to compulsory acquisition, the ultimate purpose of the com pany in relation to the land was fulfilled. Thus, it dismissed the appeals with costs. Crow v FC of T 88 ATC 4620 In the present case the court was of the view that the activity of the tax payer of purchasing land and then sub-dividing it and selling was a continuous activity, which is considered to be as an activity for profit making by sale. The contention of the tax payer that he purchased the land for the purpose of farming and then in order to clear his indebtedness he had to sell of the land so bought by him, was not considered by the court. This is because the court stated that the land was bought although with the intention of farming, but the tax payer being a poor farmer, borrowed money in order to buy the land and then he had to mortgage further to pay off the mortgages. Therefore, the tax-payer already knew that he would have to the sub-divide the land in order to pay off the credit, specially taken from the bank. Hence, even if the initial intention of the tax payer was to use the land as a farm but his continuous actions of buying and selling and then the obvious need of development in order to pay off the debts makes the sale in the nature of profit making activity done in the course of business. Hence the ingredients of section 25 of the Income tax Act. The ratio of the judgment by Lockhar J. was that in order to determine whether the activity was in the nature of profit making or not, all the ingredients, including the intention and the circumstances needs to be taken into consideration and not an individual act. McCurry Anor v FC of T 98 ATC 4487 In this case, two brothers purchased a land which had an old house of no value on it with the intention of removing the old house and constructing three townhouses on the land. The purchase price was $ 32,000 of which they borrowed $ 15,000 from the bank. Later, they borrowed $ 80,000 from the bank for building the townhouses. They advertised the units for sale before their completion but no sale was affected. Then after completion, they, along with their family moved into two of the townhouses. After about an year of this, they sold the townhouses resulting in a net profit of about $ 150,000. For some time thereafter, they lived in two of the townhouses as tenants. Also, they undertook a similar development in the area and sold those units. The Commissioner of Taxation alleges that the sums were assessable to tax under Section 25(1) of The Income Tax Assessment Act, 1936 the purpose of purchase being to make profits by sale of the townhouses which the taxpayers reject by saying that the townhouses were sold because of financial difficulties and that the purpose in mind while buying the property was to derive regular income by renting them. The Court, not convinced by their arguments came to the conclusion that the taxpayers had the purpose of realising profits by the sale of the property based on the fact that that the money for purchasing the land and building townhouses was obtained by loan. Moreover, the fact that they gave advertisement for the sale of townhouses before their completion is suggestive of their motive and no attempt was ever made to let out the townhouses. Also, the taxpayers claim that if they had undertook a profit making venture they would not have abandoned it by occupying it for a year was reject ed by the Court which said that though it was used for some other purpose as per their convenience, the motive of realising profits out of it remained the same and thus the court dismissed the application with costs. References: Case study 1: Clemens and Commissioner of Taxation [2015]AATA (Administrative Appeals Tribunal of Australia), p.124. Jaczenko and Commissioner of Taxation [2015]AATA (Administrative Appeals Tribunal of Australia), p.125. Ato.gov.au. (2015). Residency tests | Australian Taxation Office. [online] Available at: https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/Residency-tests/ [Accessed 17 Aug. 2016]. Income Tax Assessment Act, 1996 Case study 2: Californian Copper Syndicate Ltd v Harris (Surveyor of Taxes) [1904] 5 (TC), p.159. Scottish Australian Mining Co Ltd v FC of T [1950] 81 CLR, p.188. FC of T v Whitfords Beach Pty Ltd [1982] CLR, p.150. Statham Anor v FC of T [1989] ATC, p.4070. Casimaty v FC of T [1997] ATC, p.5135. Moana Sand Pty Ltd v FC of T [1988] ATC, p.4897. Crow v FC of T [1988] ATC, p.4620. McCurry Anor v FC of T [1998] ATC, p.4487.

Slave Culture Essays - Slavery In The United States, Slavery

Slave Culture Slave Culture Slavery in America thrived and continued to grow because there was a scarcity of labor. Cultivation of crops on plantations could be supervised while slaves used simple routines to harvest them, the low price at which slaves could be bought, and earning profits as a bonus for not having to pay hired work. But in the beginning half of the 19th century a strong push for slavery's final straw was coming. The people of the South tended to be more genteel, and seemed not quite adjusted to hard work, but more to giving orders. The idea of telling people how to do their work just seemed to fit all too well into this scenario. Slaves lived under virtually unsuitable conditions. Douglass' account of a slave's life told of the trying times on the plantation. An allowance was given to the workers. A monthly allowance consisted of mostly of pork and corn meal but also some money. Yearly slaves were given clothes, a couple shirts, and two pairs of pants-one pair of pants for winter and one pair for the other times of the year. They were not given beds to sleep on but rather a blanket for the floor. On top of lack of basic necessities slaves were forced to work around the clock. If they were not at their total output for the minute their owners they would be forced by the whip and encouraged to work harder, as an owner might feel. They were always subject to profanity from their masters and treated more like horses. Just like horses they were bred to be strong, in the mindset of outputSlave owners would also sexually take advantage of women slaves. Slaves turned to freedom for more than this reason though. Some were obsessed with being free and living a life where they were not told how to live-and who wouldn't be? Then there were some that were treated so cruelly, that it forced them to run just to stay alive. Since coming to America as slaves even back as far back as when the first colonies began, slaves wanted to escape. They wanted to get away from the situation they were forced into. The North was angry about the treatment of the slaves and was not happy about owners being allowed to come into their states to take the slaves back. It is amazing there were not more slave uprisings. But finally, the North decided to do something about it. They would help the slaves escape to freedom. The slaves were now angry, scared, and confused. Hearing of the Underground Railroad, they slowly began to run more and more. But in the North there was still a very strong double standard. Prejudice and discrimination ran freely against blacks, they were not given all rights of the white man or women for that matter. Professions for blacks were very limited. So leaving the plantation for the North wasn't as appealing as one might think for a slave. Plantation owners went to great lengths to keep their slaves from leaving. They had trained dogs that would attack at an instant if called upon. If slave would manage to get far enough away from the dogs, bounty hunters would be sent after them still. The North was not as bad as the South but at least the Southerners were not hypocrites. Although plantations were reaping the profits more than ever, this constant pressure was setting the stage for change and change was going to have enormous expenses. American History

Free Essays on Student Performance Analysis

There are links between student performance and financial, human, and material resources. School districts that can afford to spend have the resources stand a better chance of having higher performing students. These links also affect teaching and learning. It is pretty simple the more money, parental/community involvement and better materials, equals the more effective teacher. And the end result equals a well educated high performing student. Bear Valley Unified School District’s strategic plan illustrates all of the resources relate to teaching and learning. The first example of the resources affecting teaching and learning that I saw came from this particular statement in Bear Valley Unified School District’s strategic plan. Number four on the district parameters says: School district policy and expenditure decisions will support the Strategic Plan (bigbear.k12.ca.us/sarcs/plan.htm). By supporting the Strategic Plan which includes a lot of benefits for teachers and students shows the district’s commitment to develop its policies and budgets according to achieving what is in the plan. When a person reads this they know that the Bear Valley Unified School District is attempting to do everything in its power to achieve all of the things outlined in its strategic plan. Number six under district parameters stated the following: The school district will not change nor implement programs or activities without provisions for staff training (bigbear.k12.ca.us/sarcs/plan.htm). This statement articulates that the Bear Valley Unified School District is willing to invest money into staff development to produce better teachers within their school district. If this happens the district will produce better teachers. The more effective teacher will then challenge his/her students to become better learners. Here there seems to be a trickle down effect. By investing i n building better teachers in return will p... Free Essays on Student Performance Analysis Free Essays on Student Performance Analysis There are links between student performance and financial, human, and material resources. School districts that can afford to spend have the resources stand a better chance of having higher performing students. These links also affect teaching and learning. It is pretty simple the more money, parental/community involvement and better materials, equals the more effective teacher. And the end result equals a well educated high performing student. Bear Valley Unified School District’s strategic plan illustrates all of the resources relate to teaching and learning. The first example of the resources affecting teaching and learning that I saw came from this particular statement in Bear Valley Unified School District’s strategic plan. Number four on the district parameters says: School district policy and expenditure decisions will support the Strategic Plan (bigbear.k12.ca.us/sarcs/plan.htm). By supporting the Strategic Plan which includes a lot of benefits for teachers and students shows the district’s commitment to develop its policies and budgets according to achieving what is in the plan. When a person reads this they know that the Bear Valley Unified School District is attempting to do everything in its power to achieve all of the things outlined in its strategic plan. Number six under district parameters stated the following: The school district will not change nor implement programs or activities without provisions for staff training (bigbear.k12.ca.us/sarcs/plan.htm). This statement articulates that the Bear Valley Unified School District is willing to invest money into staff development to produce better teachers within their school district. If this happens the district will produce better teachers. The more effective teacher will then challenge his/her students to become better learners. Here there seems to be a trickle down effect. By investing i n building better teachers in return will p...

Free Essays on Jackie Robinson

Jackie Robinson: Robinson Changes Americans’ Views on Racism Jackie Robinson was one of the most profound individuals to ever walk on this earth. Robinson established a reputation as a man who never tolerated insults to his dignity (Kahn 6). One of his accomplishments was entering the major leagues and is one of the most remarkable and inspiring accomplishments in sports history. When Robinson became the first black to play in Major League Baseball, he changed Americans’ views on racism forever. Robinson was born the youngest of five children near Cairo, Georgia, on January 31, 1919. Robinson’s father, a sharecropper, left the family when Robinson was only about 2 years old. His mother, Mallie McGriff Robinson, then moved to Pasadena, California to find work (James 5). Trouble found Robinson at an early age, when he became a member of the Pasadena gang (7). Mack, Robinson’s older brother, used sports to become popular not drugs or gangs (8). In the 1936 Olympics in Berlin, Germany, Mack won the silver metal in the 200m-hurdle (13). Learning to deal with criticism early was a major contribution to his success in life. He and his friends would be called racial names while just trying to play baseball at the local park (Kahn 10). Not long after the family moved to Pasadena, California Robinson’s mother enrolled him into Pasadena Junior College. At Pasadena Junior College Robinson set a National Junior College record in the long jump of 25’ 6  ½Ã¢â‚¬  (Ringer 22). After only one year at Pasadena Junior College Robinson received an athletic scholarship to UCLA (23). There, Robinson became the first Bruin athlete to earn varsity letters in four sports (25). Robinson was a standout in football, baseball, basketball and track (26). After three years of college Robinson left college to work to support his mother (29). Several months later, Pearl Harbor was bombed, and he enlisted in the U.S. Army (31). In the Ar... Free Essays on Jackie Robinson Free Essays on Jackie Robinson Jackie Robinson: Robinson Changes Americans’ Views on Racism Jackie Robinson was one of the most profound individuals to ever walk on this earth. Robinson established a reputation as a man who never tolerated insults to his dignity (Kahn 6). One of his accomplishments was entering the major leagues and is one of the most remarkable and inspiring accomplishments in sports history. When Robinson became the first black to play in Major League Baseball, he changed Americans’ views on racism forever. Robinson was born the youngest of five children near Cairo, Georgia, on January 31, 1919. Robinson’s father, a sharecropper, left the family when Robinson was only about 2 years old. His mother, Mallie McGriff Robinson, then moved to Pasadena, California to find work (James 5). Trouble found Robinson at an early age, when he became a member of the Pasadena gang (7). Mack, Robinson’s older brother, used sports to become popular not drugs or gangs (8). In the 1936 Olympics in Berlin, Germany, Mack won the silver metal in the 200m-hurdle (13). Learning to deal with criticism early was a major contribution to his success in life. He and his friends would be called racial names while just trying to play baseball at the local park (Kahn 10). Not long after the family moved to Pasadena, California Robinson’s mother enrolled him into Pasadena Junior College. At Pasadena Junior College Robinson set a National Junior College record in the long jump of 25’ 6  ½Ã¢â‚¬  (Ringer 22). After only one year at Pasadena Junior College Robinson received an athletic scholarship to UCLA (23). There, Robinson became the first Bruin athlete to earn varsity letters in four sports (25). Robinson was a standout in football, baseball, basketball and track (26). After three years of college Robinson left college to work to support his mother (29). Several months later, Pearl Harbor was bombed, and he enlisted in the U.S. Army (31). In the Ar...

Explain the history and evolution of the U.S. Constitution, related Essay

Explain the history and evolution of the U.S. Constitution, related historical documents, and the U.S. Supreme Court - Essay Example The judges of the federal courts are structurally envisaged to remain independent through a constitutionally designated separation of powers. Article III involves dealing with two basic features of the United States Constitution, namely federalism and separation of powers which makes it eternally relevant and contestable. Here, the constitution invests central powers with the United States Supreme Court as the only institution in which the highest judicial powers of the land is concentrated. According to Amar, â€Å"the Constitution clearly does limit in important ways congressional power to shift ultimate judicial power from federal to state courts† (1985, 271). Importantly, the federal judges and the lower court judges are not equal as the latter is constitutionally created as supreme and independent. III) The Case or Controversy Requirement The case or controversy requirement of Article III is meant for safeguarding the timely power allocation among the courts in an easy ma nner, the rightful representation of a party who is ate the receiving end of the judgment and protecting the matter of self-determinism.

The company man Essay Example | Topics and Well Written Essays - 250 words

The company man - Essay Example Phil got along well with those working for him, some of whom the company may consider for his replacement. Upon his demise, Phil left his wife Hellen, who the author describes as a lovely woman having no necessary skills for work. She gave up working and resorted to taking care of the children. However, Hellen seems less bothered by Phil’s death because, to her, Phil was married to his work but not her. The surviving sons of Phil seem to have no connection with him before his death. The eldest son searches information about his father’s nature from the neighbors and the answer he gets â€Å"his dad was an embarrassment.† Phil’s girl uses to view him mockingly and choose to live near her mom. The youngest son was Phil’s favorite. At his funeral, the company president describes Phil as hardworking and a difficult man to replace. Just the evening after his funeral, the president was already organizing Phil’s replacement. The story is ironical in that it depicts Phil as hardworking yet the same work made him alienated from his family and social life. Ideally, â€Å"The company man,† is a story that illustrates the actual nature of corporate

Sensor Project Essay Example for Free

Sensor Project Essay I have decided to measure the temperature of a greenhouse using a thermistor in a potential divider circuit, and then when the temperature gets too cold, the relay will activate and turn on a heater. A thermistor is a temperature sensor in which its resistance will increase or decrease with temperature change depending on what type of resistor. An alternative for this experiment could have been measuring light levels in a greenhouse using an LDR. A light sensor in a green house could tell you when and where in the greenhouse the most intense sunlight is, which you could you use to aid your growing skills. I decided to design a temperature sensor for a greenhouse using a thermistor, as temperature can be critical in growing plants especially if it gets too hot or too cold. As my thermistor is an NTC this means that as temperature decreases its resistance increases, and when temperature increases its resistance decreases. Plan: Circuit Explanation The water is boiled until it reaches a temperature of just above 90i Celsius. The thermistor is inserted into the hot water and the voltage across it is measured for a temperature of 90i. The varying voltage across the thermistor is measured as the temperature falls at 10-degree intervals. The experiment is repeated and a second set of readings obtained. An average set of readings is obtained and a voltage-temperature conversion graph is plotted. Then test the sensor by attaching the amplifier and relay. Materials/Apparatus Needed: Thermometer, Thermistor, Beaker, Electric kettle, Power supply, Multimeter, Variable resistor, Amplifier, Relay, Leads. These pictures show me testing the thermistor (left), and testing the amplifier to see at what voltage it activates (right). Variables The volume of water used for this experiment was kept at 250cmi The experiment was completed over one day, and on the day, the temperature in the physics laboratory where the experiment took place was 19i C. Results Calculation of R1: I want my amplifier to activate at 10i C, for the heater to come on. The amplifier turns on at 1. 93V, as I have tested, and because the voltage is proportional to the resistance, I will work out which resister to use using the equation below. (At 10i C the thermistors resistance is 124. 8? )