Considered As Income And Are Taxable Under â€Myassignmenthelp.Com

Question: Discuss About The Considered As Income And Are Taxable Under? Answer: Introducation According to the Taxation Ruling of TR 94/D20 defines that the accounting of the compensation that is received in regard to the personal injury would be treated as the assessable income under section Subsection 25 (1) of the ITAA 1936. The income received by Yen the present context is represents weekly payments and they are treated as salary and attracts liability for tax. Compensation for the loss of finger is a lump sum payment related to the personal injury and therefore under Subsection 25 (1) of the ITAA 1936 they are considered as tax free income (Barkoczy, 2016). An important consideration is that lump sum payment made for physical injury is considered as a common law claim that cannot be considered for taxation law. Amount paid by the employer is considered as benefit for Yan and would be included in the taxable income of the Yans. Social security disability support pension is considered as the benefit that possesses the characteristics of the income (Woellner et al., 2016). These income are considered as assessable completely during the year in which it is received and would be considered as taxable under Section 25 (1) of the ITAA. Arguably, amounts received by Yen is under the social security disability support pension is regarded as the insured person lost income due to the injury. These amounts are considered as income and are taxable under Subsection 25 (1). Determination of the Taxable Income Particulars Section Amount ($) Assessable Income Workman Compensation subsection 25(1) of the ITAA 1936 4000 ($500*8 weeks) Compensation for loss of finger subsection 25(1) of the ITAA 1936 Exempted Cost of ambulance received 950 Social security disability support pension subsection 25(1) of the ITAA 1936 750 Total Taxable Income 5700 Reference List: Barkoczy, S. (2016). Foundations of Taxation Law 2016.OUP Catalogue. Woellner, R., Barkoczy, S., Murphy, S., Evans, C., Pinto, D. (2016). Australian business Law 2016.OUP Catalogue.