Taxation Law and Practice A Case Study Example | Topics and Well Written Essays - 2000 words

Taxation Law and Practice A - Case Study Example This is in order to avoid double taxation as Joe is still going to pay income tax on this amount as part of his income. The bonus payment of $5,000 shall not be considered for this particular period. This is because it was paid to Joe on 10 July 2014 .This particular date falls outside of the financial year 2013/14 that runs from 1July 2013 to 1 July 2014. In Section 8.1 of the ITAA97, the company is allowed to deduct any amounts from its assessable income if this amount was incurred in the gaining or the production of the assessable income. In this situation, the amount paid to Joe was for his skills as a labourer. This skill enabled the company to conduct its business and hence be able to make income from its activities. It is therefore right to assume that the amount the company paid to Joe should not be taxed and is therefore a deductible from the assessable income of the company. MM have to pay employee super. The Superrannuation Guarantee (Administration) Act 1992 governs the relationship between employees and their employers. It includes details about the employer’s liability in the making of the payments. It also states how the calculation of the super guarantee charge is done. Contributions should be paid by the 28th of the month that follows the end of the quarter1. Failure to do this will result in the payment of a superannuation charge by the employers. Joe is qualified to have this payment made for him on his behalf by the company. The requirements are that the employee should be over 18 years old and they should earn more than $450 before taxation in a calendar month. Super payments are normally calculated and made after every three months. The payment of a former employee of backdated payments means that the super payments that had accrued to that employee must also be paid. The employees that are excluded from this arrangement include those who earn less than $ 450 in a month. Employees who are