Taxation – Principles, Types of Taxes, and Compliance Study Guide
GST is centered around which concepts? - correct answer ✔✔Charging GST
Claiming input tax credits
GST generally has a neutral effect on supplies between registered entities - correct answer
✔✔True
The Medicate Levy Surchage is payable on a taxpayer's income for surcharge purposes for the
year - correct answer ✔✔False
Which of the following marginal rates is a part of the progressive rates schedule for resident
individuals? - correct answer ✔✔19%
32.5%
37%
45%
Example of statutory income - correct answer ✔✔capital gains from the sale of shares
GST charged on a taxable supply is an example of exempt income - correct answer ✔✔False
GST is non-assessable non-exempt income
Exempt income = icnome of registered charities, public education institutions (s50-5)
,Set of provisions were part of the the Tax Law Improvement Project's instalment rewrites of
provisions in the ITAA36 into ITAA97 - correct answer ✔✔Capital gains tax provisions
Core provisions
Trading stock provisions
Which are part of both 'income for surcharge purposes' and 'adjusted taxable income'? - correct
answer ✔✔Taxable income for the income year
Total net investment loss for the income year
Reportable superannuation contributions for the income yer
Amounts collected under the PAYG system are credited against a taxpayer's actual tax liability of
the yer - correct answer ✔✔True
Which payments would the PAYG instalment regime apply? - correct answer ✔✔Corporate
income
A taxpayer's business income
Cases considered the residency of individuals who were posted/transferred to branch offices
overseas? - correct answer ✔✔- Applegate
- Jenkins
A partnership, as defined in the tax legislation, includes a limited partnership. True/False? -
correct answer ✔✔True
, Under the general partnership taxation rules in Div 5 of Pt III ITAA36, partnerships are required
to lodge returns and pay tax - correct answer ✔✔False
Because under these rules, partners do not pay tax, partnershis income and losses 'flow
through' to the partners
Salary' payments are not deductible to a partnership and do not affect the calculation of 'net
income' or 'net loss' under s90 ITAA36. True or False? - correct answer ✔✔True
Case illustrates the principle that that partners involved in 'mere tax partnerships' (rather than
carrying on a business) are required to share profits and losses in accordance with their interest
in the properties - correct answer ✔✔McDonald
Partners make capital gains and capital losses individually from CGT events happening in
relation to partnership assets. T/F? - correct answer ✔✔True
Trustees of resident trust estates that are assessed under s99 are required to pay income tax at
the top marginal tax rate (45% in 2017/18) and (except in the case of a deceased estate) would
also generally pay the Medicare Levy (2%). - correct answer ✔✔False
Because medicare levy may also be payable (not compulsory)
fixed trust - correct answer ✔✔entitlements to income and capital are fixed
inter vivos trust - correct answer ✔✔created during one's lifetime
implied trust - correct answer ✔✔no express declaration of trust, but still be implied
public trust - correct answer ✔✔established for charitable purposes
GST is centered around which concepts? - correct answer ✔✔Charging GST
Claiming input tax credits
GST generally has a neutral effect on supplies between registered entities - correct answer
✔✔True
The Medicate Levy Surchage is payable on a taxpayer's income for surcharge purposes for the
year - correct answer ✔✔False
Which of the following marginal rates is a part of the progressive rates schedule for resident
individuals? - correct answer ✔✔19%
32.5%
37%
45%
Example of statutory income - correct answer ✔✔capital gains from the sale of shares
GST charged on a taxable supply is an example of exempt income - correct answer ✔✔False
GST is non-assessable non-exempt income
Exempt income = icnome of registered charities, public education institutions (s50-5)
,Set of provisions were part of the the Tax Law Improvement Project's instalment rewrites of
provisions in the ITAA36 into ITAA97 - correct answer ✔✔Capital gains tax provisions
Core provisions
Trading stock provisions
Which are part of both 'income for surcharge purposes' and 'adjusted taxable income'? - correct
answer ✔✔Taxable income for the income year
Total net investment loss for the income year
Reportable superannuation contributions for the income yer
Amounts collected under the PAYG system are credited against a taxpayer's actual tax liability of
the yer - correct answer ✔✔True
Which payments would the PAYG instalment regime apply? - correct answer ✔✔Corporate
income
A taxpayer's business income
Cases considered the residency of individuals who were posted/transferred to branch offices
overseas? - correct answer ✔✔- Applegate
- Jenkins
A partnership, as defined in the tax legislation, includes a limited partnership. True/False? -
correct answer ✔✔True
, Under the general partnership taxation rules in Div 5 of Pt III ITAA36, partnerships are required
to lodge returns and pay tax - correct answer ✔✔False
Because under these rules, partners do not pay tax, partnershis income and losses 'flow
through' to the partners
Salary' payments are not deductible to a partnership and do not affect the calculation of 'net
income' or 'net loss' under s90 ITAA36. True or False? - correct answer ✔✔True
Case illustrates the principle that that partners involved in 'mere tax partnerships' (rather than
carrying on a business) are required to share profits and losses in accordance with their interest
in the properties - correct answer ✔✔McDonald
Partners make capital gains and capital losses individually from CGT events happening in
relation to partnership assets. T/F? - correct answer ✔✔True
Trustees of resident trust estates that are assessed under s99 are required to pay income tax at
the top marginal tax rate (45% in 2017/18) and (except in the case of a deceased estate) would
also generally pay the Medicare Levy (2%). - correct answer ✔✔False
Because medicare levy may also be payable (not compulsory)
fixed trust - correct answer ✔✔entitlements to income and capital are fixed
inter vivos trust - correct answer ✔✔created during one's lifetime
implied trust - correct answer ✔✔no express declaration of trust, but still be implied
public trust - correct answer ✔✔established for charitable purposes
