Tax Ruling Essay

Submitted By erict48
Words: 1751
Pages: 8

Pubic ruling: A ruling for everyone, it’s the law.
Public rulings provide advice on interpretation of the laws that the Commissioner administers. Public rulings deal with priority issues that require clarification, and are issued as either rulings or determinations. A public ruling is not the law.
Private ruling: is for one person or a class of individual applies for that ruling.
A private ruling set out the Commissioner's opinion about the way a tax law applies, or would apply, to you in relation to a specified scheme or circumstance.
If you rely on a private ruling you have received (that is, you apply the ruling to your tax affairs), the Commissioner must administer the law in the way set out in the ruling, unless the ruling is found to be incorrect and applying the law correctly would lead to a better outcome for you.
Class ruling is for a particular class of individual in the southern empire association.
Class rulings are public rulings that enable the Commissioner to provide legally binding advice in response to a request from an entity seeking advice about the application of a relevant provision to a specific class of persons, in relation to a particular scheme. The purpose of a class ruling is to provide certainty to participants and minimise the need for individual participants to seek private rulings.
Product ruling is relating to a particular tax minimization scheme for example an ostrich farm.
A rule in accordance with the correct application of the law - nothing more nor less. The ruling therefore presents an unbiased view of the facts and is not aimed at assisting the promoter to sell the product.
Tax ruling is a type of public ruling that sets out the ATO interpretation of a tax law.
Tax determination is like a tax ruling but it covers narrow areas.
Tax Determinations have the same status as Public Rulings. They are issued by the Tax Office to outline its view of the law. The difference between a TD and a Public Ruling is that a TD deals with single issues whereas a Public Ruling looks at all of the tax implications that might be involved in an arrangement or transaction.
6.2 What is the due date for an individual to lodge a tax return?
31 of October 20xx due for tax lodge unless you lodge through Tax AGENT.
6.3 How can a return be lodged if the taxpayer is overseas on a holiday?
Lodging online by E-tax (main) or by phone. Friend can’t sign for you.

6.6 Briefly summarise the way in which Failure To Lodge penalty is imposed.
Failure to lodge your tax return on the due date, the ATO will send a notice to tell you FTL penalty.

6.9 An individual taxpayer is 47 days late in lodging his tax return. What will be the FTL penalty?
$220 for every 47 day or part of you late there is one penalty unit up 5 penalty units. 1penalty unit=110, $550 for 300 days
For every 28 days you are late 1 penalty unit, up to a maximum of 5. $500 for 300 days late. After 28 days x 5= 140 days.

Task 7
What is self-assessment mean?
The ATO assumes that all the claims for deduction on the tax return are correct, when issuing the assessment notice. Subsequently the ATO relies on audit and post assessment checking 1. Tax lodged. 2. Tax assessment done by ATO for(individual or by company /superfund). 3. ATO audits your tax return.
For returns subject to the self assessment system: * it is assumed the return is correct and all income is disclosed * expenses claimed are all duly entitled * onus is on the taxpayer for the return to be accurate * substantiation requirements have been complied with
SelfAssessment assumes that taxpayers know all the relevant tax laws and regulations, and are therefore able to calculate their own taxable income and level of tax applicable. Full self assessment applies to companies & superannuation funds.
Self Assessment - it is assumed the return/claims for deductions is correct and all income is disclosed,