CA ANZ Advanced Tax (Australia) study guide
CA ANZ Advanced Tax (Australia) · Work through your exam, one topic at a time.
CA ANZ Advanced Tax (Australia) is the tax-specific subject within the Chartered Accountants Australia and New Zealand CA Program. It is aimed at candidates who already hold foundational accounting and legal knowledge and are moving toward practical, advisory-level competence in Australian tax. The CA ANZ Advanced Tax (Australia) study guide has 8 sections and about 3,157 words.
01The Australian Tax System: Constitutional Foundations, Sources and Rates
The Australian tax system rests on s 51(ii) of the Constitution, which gives the Commonwealth power to tax, but only so as not to discriminate between states or parts of states. Income tax is imposed through a two-step constitutional device: the Income Tax Act fixes the rate, while the Income Tax Assessment Act 1936 and 1997 create liability and define the base.
331 words, about 2 min02Tax Administration, Returns, Assessments and Professional Ethics
Tax administration centres on self-assessment: the taxpayer lodges a return, the Commissioner is taken to have made an assessment, and the onus of proving an assessment is excessive lies on the taxpayer (s 14ZZK of the Taxation Administration Act 1953 ). Candidates must understand amendment periods (generally two years for individuals and four years for other entities, extended where there is fraud or evasion), the four-year limit on primary tax amended to give effect to a private ruling, and the objection and review pathway through the Administrative Review Tribunal and then the Federal Court on appeal.
322 words, about 2 min03Assessable Income: Ordinary and Statutory Concepts
Assessable income comprises ordinary income under s 6-5 and statutory income under s 6-10. Ordinary income is characterised by case law: it must be income according to ordinary concepts, requiring a gain that is periodic, expected and derived from an income-producing source.
348 words, about 2 min04Deductions and Trading Stock
Section 8-1 allows deductions for losses or outgoings to the extent incurred in gaining or producing assessable income, or necessarily incurred in carrying on a business, provided they are not capital, private or domestic, or incurred in gaining exempt income. Specific provisions override or supplement s 8-1, including depreciation, repairs, bad debts, superannuation contributions and interest.
335 words, about 2 min05Capital Gains Tax and Depreciation
CGT applies to CGT events, most commonly A1 (disposal of a CGT asset). The gain is capital proceeds less cost base (five elements including acquisition cost, incidental costs, and non-capital costs) or reduced cost base for losses.
328 words, about 2 min06Taxation of Individuals, Partnerships, Trusts and Companies
Individuals are taxed on taxable income at progressive rates, with the tax-free threshold, low income tax offset, and Medicare levy. Non-residents are taxed from the first dollar.
317 words, about 2 min07GST and Indirect Taxes
GST is a broad-based 10% tax on supplies and importations. A GST-free supply includes most food, health and education; input-taxed supplies include financial supplies and residential rent.
288 words, about 1 min08International Taxation and Cross-Border Transactions
Australia taxes residents on worldwide income and non-residents on Australian-source income. Residency tests include the resides test, domicile test, 183-day test and Commonwealth superannuation test.
888 words, about 4 min