Australian Taxation Law Assignment

revenue enhancementation 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. force out Pelaco on whether it is assessed on the $30m and the profit on the deal of the quotas. FACTS Pelaco is a publicly listed ships company and a wholesale clothing business that sells seconded clothing. Pelaco holds 12 valuable conditional relation 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 shore Ltd. In return, Pelaco p ays interest to Broke Bank Ltd that is equivalent to the interest surely 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).

psychoanalysis OF THE FACTS topic LAW (quote and discuss 2 similar cases, 600 words) base on the four actions outlined above, the question asks for the provision of paint a picture 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 Br oke 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 questionable, depending on whether a kind or constrict approach is taken by the ATO (or The Court), whether the profits should be categorise as income or as capital gains. If a broad approach to the recognition of the nature of the business is taken indeed income from the sale of import quotas many been seen as...If you want to get a full essay, found it on our website: OrderCustomPaper.com

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