Subjects 2008
Taxation of Business and Investment Income B 730655
- Credited Courses: Graduate Diploma in Corporations and Securities Law 538; Graduate Diploma in Corporations and Securities Law 538; Graduate Diploma in Legal Studies L08; Graduate Diploma in Tax 187; Graduate Diploma in Tax 187; Master of Commercial Law 504; Master of Commercial Law 504; Master of Laws (LLM) 502; Master of Laws (LLM) 502; Master of Laws by Coursework (LLM) 502; Master of Tax 742; Master of Tax 742
Objectives
The subject will provide an advanced and specialised study of one of the foundation areas of income tax, including the taxation of capital gains, both as regards policy and implementation. It will build upon the knowledge gained in Taxation of Business and Investment Income A.
Upon successful completion of the subject, candidates will possess an advanced understanding of the policies, detailed rules and current practical problems involved in the taxation of business income and property income, achieved through the analysis of a number of specific problems discussed in the seminars.
Syllabus
The subject considers in detail the taxation of business income and property (investment) income, including the deductions available in respect of both types of income. It also considers the rules of tax accounting relating to the timing of derivation of such income and the incurrence of relevant deductions, and compares the revenue treatment with the treatment under the capital gains provisions.
The subject includes an examination of the following:
- Business income and deductions: Isolated ventures; business and investing; product or sale of business; preserving a business; goodwill; business income and periodicity; treatment of leasing income, rent and lease incentives; repairs and depreciation; property development
- Property income: Compensation receipts; sale or use of property; royalties; interest; debt and gearing
- Tax accounting: Obligation to prepare accounts; meaning and scope of accruals accounting; actual and deemed costs; accounting for financing arrangements.
