HA3042 Taxation Law T2 2018 Individual Assignment (2500 words) Due date: Week 10 XXXXXXXXXXMaximum marks: 20 (20%) Instructions: This assignment is to be submitted by the due date in soft-copy only...

LAW AND ITS APPLICATION
LAW AND ITS APPLICATION
Contents
TASK 1    1
FACTS:    1
ISSUE    1
LAW AND ITS APPLICATIONS    1
CONCLUSION    3
TASK 2    3
TASK 3    5
Authenticity of the said principle in Australia    6
TASK 4    7
Facts    7
Issue    7
Law and its application    7
Conclusion    9
REFERENCES:    10
TASK 1
FACTS:
The lottery department has initiated a new system for lottery named “Set for Life” along with this the winner has been paid around $ 50000 every time for fix duration of 20 years. The amount of sum has been paid yearly on the period when the initial payment made by the customer and it is the duty of the directive to pay a due sum to the deceased executor in the case of the death of an individual.
ISSUE
If the sum of $50000 has been paid annually
LAW AND ITS APPLICATIONS
Each territories, states, and local government have their unique and effective by-laws and laws which perform the activities with respect to raise fund for Non-profit organization and other organization which taxed accordingly. Carrying out such type of activities like raffle or lottery is a taxable as per the rules and regulation of the territory, state, and local administration and is the amount is discharged if the particular organization engaged into some charitable work or any charitable trust (McKerchar, 2005).
It is to be believed that the taxability scenario of the Lottery instruction will be quite similar and the equivalent area will be examined in terms of suitable territory, state, and local administration in which the particular commission has been introduced. According to the ITAA, most of the companies in Australia as well as other companies involved in the effective gambling are needed to recompense the income tax at the rate of 35% and other goods and amenities at 10% on the total sales being made at the end of the year. Along with this straight tax, there are many taxes which are imposed on the basis of bye-laws and laws of the applicable territory, state, and local government. The amount of taxes makes an important part and big foundation of the revenue for territory, state, and local government. There are many kinds of taxes which are imposed mainly for gambling operator;
· Direct taxes in the amount of revenue made by the gambling company.
· Any kind of expense in the form of license charges which is mainly paid on a periodic basis or paid initially depends upon the norms of the individual state, territory, and local authority.
· There are other kinds of fees and taxes charged with respect to the particular event.
The wide extent and manner of these taxes imposed varies on the source of the kinds of services provided along with the area of operation or functionality which is needed to be followed for the appropriate territory, state, and local government bye-laws and laws. In the recent time, many variations made in the laws and legislature on the state level should have imposed any other kind of taxes along with the taxes already imposed on the gambling operator. It has been identified that in the year 2016, there was a place named as place of consumption tax of around 15% of net revenue as taken by the customers was dispersed. The management has brought new laws in 2017in the practice of the consumption tax.
In case of an separate identity, according to the ITAA, The award money or prize won in the lottery or draw initiated by any unapproved institute or any bank has been taxed in the income. So, if an specific person wins the lottery conducted by the authorities or commission agreed by the Australian government set for life is not taxable in income. The main aim behind not taxable the income is that having involvement in such game includes a high mark of risk in losing or winning the game as given in the case of the Trautwein v WCT(1936)56 CLR 196; Case K25 78 ATC 243; FCT v Evans 89 ATC 4540. To many people, the lottery or draws is just mere a game and for any it is their kind of income. However, the foremost reason behind not challenging the game is that it is same taxed then it will be needed expenses and losses inference which2 would be highly complex to be collect with as many individuals incurs losses instead of gains. Not about this, even the validation and truth of the transaction is quite hard to judge. So, if the government taxed the gambling game as the individual would not be able to resists themselves to play lottery and games and there would not be any other consequence on the revenue created by the state administration or the revenue generated by the gambling machinists (McKerchar, 2005).
Therefore, in case of playing lotteries and games is one of the main commercial activity of the entities then the same amount would be assessable along with the losses would be deductible....