924Lecture One Introduction to taxation law Tax formula, tax rates and tax offsets Administrative aspects of taxation
Readings from Australian Taxation Law 2014 CCH (referred to in this lecture as “W”)

Introduction to taxation law W 1-550; W1-310 to 1-620 Tax formula, tax rates and tax offsets W 2-000 to 2-040; W2-100 to 2-150 W2-200; W2-300 to 2-405 W2-500 to 2-520; W 2-640 Administrative aspects of taxation Tax rulings, tax returns and assessments:W30-000 to 30-025; W30-033 to W30-040; W30-055 to 30-104; W30-140 to 30-155 Tax appeal process: W31-300 to 31-700; W33-020 to 33-083; W33-095

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What is a tax?
Principles from High Court in MacCormick v FC of T (1983-84) 158 CLR 62 – a payment is a tax where: 1. it is a compulsory payment 2. the money is raised for public purposes 3. it is not arbitrary and is not a penalty 4. it is not a payment for services, and 5. it is contestable – can be challenged Taxes are imposed at three levels in Australia: Commonwealth, State and Local
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Types of taxes
1. Income taxes imposed by the Commonwealth on income -- paid by individuals, companies etc 2. Property taxes – death duties, wealth tax (no longer in Australia) 3. Taxes on consumption – GST and customs duties by the Commonwealth, stamp duties by the States 4. Taxes on labour and land -- Pay-roll tax on wages and land tax on land (unless used for residence) – imposed by the States 5. Taxes imposed by local government, eg, rates on home owners
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Australian Taxation System
Sources of Australian income tax law

• Legislation
Statutes (legislation) passed by the Federal Parliament Federal tax legislation includes: Income Tax Assessment Act 1997 (ITAA97) – the most important tax legislation Income Tax Assessment Act 1936 (ITAA36) Fringe Benefits Tax Assessment Act 1986 Tax Administration Act 1953 A New Tax System (Goods and Services Tax) Act 1999

• Case