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| Income Tax |
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Sources of taxation law Statute law Such as ITAA36, ITAA97 Case law Law created by the courts and Administrative Appeals Tribunal in interpreting Statutes Practices of the ATO Making legally binding rulings and determinations Key concepts Taxable income equals assessable income less deductions Assessable income consists of ordinary income and Statutory income Deductions comprise general deductions and specific deductions Income year 1 July to 30 June of the following year Derivation of income includes actual physical receipt and where an amount is applied or dealt with on the taxpayer’s behalf e.g. interest credited to an account |
| Income Tax Terminology |
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Direct Taxes
Constitutional power S.51(ii) empowers the Commonwealth Government to impose income tax Statutory power Legislation enacted by the Commonwealth Parliament Income tax legislation in the form of:
Accounting methods Cash basis used by wage/salary earners and many business taxpayers Accruals basis used by business taxpayers |