Case Study (revenue Law)

Running head : CASE STUDYRevenue LawNameCourseUniversityTutorDateThe issue in this cause is whether the check up on that David certain is taxable , during which year of tax and by what govern . The cheque he received was for refreshful abdicate modification from his former Australian employerIn the year that David received the brisk b revise cheque , he had already resigned and leftover for the States as we are told that that the opportunity was in early 2006It is unclouded to as heart and soule that the clean forego allowance cheque that he received is for the appropriate that he did not condition when he was belt up employment back in AustraliaThe lawAccording to surgical incision 26AC of the Income tax Assessment Act (Australian which deals with lump add up earnings of one-year result allowance that is not taken , it states that the refreshed take into account allowance is taxable with the former(a) sources of incomeThis is the case irrespective of the status period that the initial actual leave allowance is accruingThe Income trade union movement Act statesSection 26 AC (1 . This section applies to all sum of money remunerative after(prenominal)wards 15 August 1978 (whether voluntarily by agreement or by compulsion of law to a tax payer in a lump sum in consequence of the retirement of the tax payer after the date from any(prenominal) office or employment or in consequence of the termination that after that date of any office or employment of the taxpayer , being an amount that is pay in respect of unused annual leave or in respect of unused annual leave and a bonus .

Loading or other additional requital relating to that leaveIn the above provision of the Act (sec 26AC (1 , annual leave shammer any leave taken to be annual leave , enjoyment leave or holidays being leave to which a person has an entitlement by law of the country resulting from employment or the contract agreements to an officeThe applicationIn this case , the above law applies to David in that it relates to the unused leave allowance that relates to the employment when he was in AustraliaSome of the other issues that could arise are to do with the residence year of income and whether he should be taxed at the normal tax revenue rate (using occupier or non occupier ratesIssue of residenceDavid is still a nonmigratory of Australia since they be after to reside in the USA for but 4 days and that is the period that his wife is contractedSince he is still a resident , he pull up risk be taxed at the resident taxation rates , which in 1978 were 5 of all the unused leave allowanceYear of incomeThe year of income is weighty in this case in that the allowance was for the year of income 2006 . David received the cheque in 2007This fact will enable us to determine the tax on the allowance using the plethoric rate (2006 ) and it will be taxed together with the other incomes of 2006Taxation...If you involve to get a full essay, order it on our website: OrderCustomPaper.com

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