AUSTRALIA TAXATION—2ND EDITION TOPIC FINDER TOOL
Module 1: Legal, ethical and regulatory fundamentals
Page
Preview 25
Introduction
Objectives
Teaching materials
Tax law environment 28
Introduction
Overview of the Australian legal system
Power to raise taxes in Australia
Progress of taxation Bills through parliament
How the courts interpret taxation law
Taxation and administrative law
Accessing the law
Ethical principles and behaviour 37
What are ethics?
Ethical principles
APES 110 Code of Ethics for Professional Accountants
APES 220 Taxation Services
Tax Practitioners Board Code of Professional Conduct
Identifying ethical dilemmas 43
Applying the conceptual framework
Facing ethical conflicts
Resolving ethical dilemmas
Steps for making a good decision
Ethical dilemma checklist
Tax practitioner obligations 47
What is the Tax Practitioners Board?
Tax agent
Business activity statement agent
Tax (financial) adviser
Tax Practitioners Board Code of Professional Conduct 54
Principles of the Tax Practitioners Board Code of Professional Conduct
Code of operations for tax (financial) advisers
Tax planning, avoidance and evasion 59
Distinguishing between terms
Promoter penalty regime
Summary and review 61
Suggested answers 63
References 65
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AUSTRALIA TAXATION—2ND EDITION TOPIC FINDER TOOL
Module 2: Principles of assessable income
Page
Preview 69
Introduction
Objectives
Teaching materials
Defining and determining income 71
What is income?
Types of income
Compensation
Fixed income investments
Determining source of income 77
Source is a matter of fact
Core source principles
Tax implications of residency and non-residency 77
Why is residency important?
Test of residency for individuals
Test of residency for companies
Test of residency for trusts
Test of residency for superannuation funds
Derivation 82
Why is derivation important?
Derivation: When and why?
Determining derivation for tax purposes 85
Existence of a business
Commencement of a business
Determining income from a business
International taxation core concepts 88
Treatment of foreign income, deductions and offsets
Double taxation agreements and allocation of taxing rights
Withholding tax regime
Transfer pricing regime
Conversion of foreign currency rules
Trading stock core concepts 95
Overview
Accounting for trading stock
Valuation of trading stock
Disposal of trading stock
Trading stock concessions for small business entities
Summary and review 102
Suggested answers 103
References 105
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