Test bank 2025 - University of Melbourne BLAW30002

Test bank 2025 - University of Melbourne / BLAW30002 Principles of Taxation Law 2024 1st Edition Kerrie Sadiq, Celeste Black Thomson Reuters (Professional) Australia Limited

9780455248110

• 115 Q&A from all chapters
• 65 core concepts explained
• 55 fill in the blank questions and answers
• 59 true/not true Q&A
• 25 main developments globally on taxation law 2025 and onward 1 / 3

Contents 115 questions and answers on the book complete.....................................3 Basic Principles of Taxation......................................................................3 Residency and Source..............................................................................3 Assessable Income...................................................................................3 Deductions...............................................................................................4 Capital Gains Tax (CGT)............................................................................4 Goods and Services Tax (GST)..................................................................4 Tax Administration and Compliance.........................................................5 Advanced CGT Topics...............................................................................5 Fringe Benefits Tax (FBT)..........................................................................5 International Taxation...............................................................................5 Superannuation and Retirement Taxation................................................6 Tax Avoidance and Anti-Avoidance Rules..................................................6 Corporate Taxation...................................................................................7 Tax Disputes and Penalties.......................................................................7 Tax Administration and Compliance (Continued)......................................7 Non-Profit and Charitable Organizations..................................................8 State and Local Taxes...............................................................................8 Special Topics in Taxation.........................................................................8 International Taxation (Continued)...........................................................9 Environmental and Carbon Taxes.............................................................9 Taxation Case Law and Precedents..........................................................9 Emerging Issues in Taxation...................................................................10 Miscellaneous Topics..............................................................................10 65 core concepts from Principles of Taxation Law 2024............................12 55 fill in the blanks questions....................................................................16 Answers to the fill-in-the-blank questions.................................................21 59 true/not true statements, answers separately.....................................22 Answers to the True/Not True Statements.................................................25 25 important developments taxation law globally....................................28 2 / 3

115 questions and answers on the book complete Basic Principles of Taxation 1.Question: What is the difference between progressive and proportional tax systems?Answer: Progressive taxes increase as income rises, while proportional taxes impose a flat rate regardless of income.

2.Question: Why is the principle of equity important in taxation?

Answer: It ensures taxpayers are taxed based on their ability to pay, promoting fairness.

3.Question: Name three fundamental principles of taxation.

Answer: Equity, efficiency, and simplicity.

4.Question: What is double taxation, and how can it be mitigated?

Answer: Double taxation occurs when the same income is taxed in two jurisdictions. It can be mitigated through tax treaties or foreign tax credits.

5.Question: Define tax avoidance and tax evasion.

Answer: Tax avoidance is legal minimization of tax liabilities, while tax evasion involves illegal non-payment of taxes.Residency and Source

6.Question: What is the domicile test in determining tax residency?

Answer: It assesses whether an individual's permanent home is in Australia.

7.Question: How is the 183-day test applied?

Answer: If an individual is physically present in Australia for 183 days or more in a year, they may be deemed a resident for tax purposes.

8.Question: Explain the significance of the superannuation test for residency.

Answer: It deems individuals members of certain Australian government superannuation schemes as residents, regardless of other factors.

9.Question: How is the source of income determined?

Answer: It is based on where the income-generating activities occur or where the payer resides.

10.Question: Are foreign residents taxed on income derived in Australia?

Answer: Yes, foreign residents are taxed only on Australian-sourced income.

Assessable Income

11.Question: What is ordinary income under Section 6-5 of ITAA 1997?

Answer: Income earned from personal exertion, business operations, or property.

12.Question: Give examples of statutory income.

Answer: Capital gains, certain allowances, and other legislated items.

13.Question: What is exempt income?

Answer: Income not subject to tax, such as some government benefits and scholarships.

14.Question: Explain the concept of constructive receipt of income.

Answer: Income is considered derived when it is made available to the taxpayer.

• / 3