Taxation Law Practice Essay Example | Topics and Well Written Essays - 2250 words

Taxation Law Practice - Essay ExampleIn Australia, income taxes are increasingly oblige with senior high schooler income earners paying a higher percentage than lower income earners (ATO, 2007)Where income is earned in the form of capital conglomerates on prescribed assets, only half of the gain is measurable for Capital Gains Tax (CGT) purposes if it was held for at least 12 months. If the assets were held for less than 12 months, then it is fully measurable for CGT purposes. A persons principal place of residency however is exempt from CGT. Where income is earned in the form of capital gains on prescribed assets, only half of the gain is assessable for Capital Gains Tax (CGT) purposes if it was held for at least 12 months. If the assets were held for less than 12 months, then it is fully assessable for CGT purposes. A persons principal place of residence however is exempt from CGT.Medicare (National Health Insurance) is overbeard at a flat 1.5% rate. If you earn more than 50,0 00 and do not have private health insurance you are liable for an extra 1% of your taxable income. This extra charge is known as the Medicare Levy Surcharge.Companies and corporations pay tax on profits. Not just like personal income taxes which use a progressive range, incorporated taxes in Australia are calculated at a flat 30% rate. Tax is paid on corporate income at the corporate range before it is distributed to individual shareholders as dividends. A tax credit called a franking credit is provided to individuals who receive dividends to reflect the tax already paid at the corporate level a process known as dividend imputation (ATO, 2007).GOODS AND SERVICES TAXESThe Federal Government levies a multi-stage tax of 10% on the supply of some and services by entities registered for Goods and Services Tax (GST). There are lots of supplies which are GST-free just like many basic foodstuffs, medical and educational services, exports input-taxed like residential accommodation, financ ial services exempt similar to Government charges or outside the scope of GST.The profit from this tax is disseminated to the States.State governments do not charge any sales taxes though they do impose stamp duties on a series of transactions (ATO, 2007). PROPERTY TAXESLocal governments are typically funded by and large by property taxes on residential, industrial and commercial properties. Aside from that, some state governments charge tax on land values for investors and primary residences of high value.The state governments also charge taxes on the transfer of property title and the registration of commercial leases.Fire Service Charges are also frequently apply to domestic house insurance and business insurance contracts. These charges are required under State Government law to assist in funding the antiaircraft services in each State (ATO, 2007).EXCISE TAXESBoth the federal and state governments require excise