Australian Taxation Law Assignment

levyation Law LEGL602 Semester Two 2011 Due Date: Wednesday 21 Sepember 2011 Words Limit: 1,200 - 1,500 words Required: reference to ITAA 1936, ITAA 1997, ATO Tax Rulings, analysis of key issues, Inclusion of Bibliography of reference materials. nominate Pelaco on whether it is assessed on the $30m and the profit on the bargain of the quotas. FACTS Pelaco is a publically listed ships company and a wholesale clothing business that sells seconded clothing. Pelaco holds 12 valuable issue quotas that permit it to import stock. Action 1 is that Pelaco sells 2 import quotas for profit, which the ATO has assessed as income. Action 2 is that Pelaco sells shares in its subsidiaries for $50M. Action 3 is that $50M is lent to Woollen Wear Pty Ltd (Woollen), a subsidiary of Pelaco. Woollen is obligated to pay interest on the $50M back to Pelaco. Action 4 is that Pelaco receives (borrows) $30M from Broke chamfer Ltd. In return, Pelaco pays interest to Broke B ank Ltd that is equivalent to the interest for certain from Woollen. The ATO has assessed the receipt of $30M to be a lump sum. REQUIRED Advise Pelaco on whether it is assessed on the $30M (Action 4) and the profit on the sale of the quotas (Action 1).

compend OF THE FACTS topic LAW (quote and discuss 2 similar cases, 600 words) establish on the four actions outlined above, the question asks for the provision of give the axe on whether the ATO can assess receipt of income for Pelaco on, 1. The sale of its import quotas (Action 1), and; 2. On the $30M lump sum received from Broke Bank Ltd (Action 4). sales event of Import Quotas for profit (Action 1) With regard to the sale of import quotas for profit, it is que! stionable, depending on whether a panoptic or take approach is taken by the ATO (or The Court), whether the profits should be sort out as income or as capital gains. If a broad approach to the recognition of the nature of the business is taken thus income from the sale of import quotas many been seen as...If you want to get a full essay, found it on our website: OrderEssay.net

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