Taxation Fundamentals and Planning

RMIT Classification: Trusted
BAFI 1014




Taxation Fundamentals
and Planning

, RMIT Classification: Trusted
BAFI 1014
LEARNING OBJECTIVES
• Identify the source of Australian taxation law.

• Outline the different components of taxable income.

• Identify the various taxable entities, and compare the
tax advantages and disadvantages of these different
entities.

• calculate net tax payable for an individual, including
levies and tax offsets


• Outline the taxation implications associated with the
returns generated from different forms of investment,
including capital gains tax

, RMIT Classification: Trusted

INTRODUCTION
BAFI 1014



• Taxation implications are an important factor in any
investment decision.
• It is essential that financial planners understand the
taxation system and how it affects various investment
alternatives.
• Financial planners must understand the difference between
taxation planning, tax evasion and tax avoidance.



.
McKeown, Warren. FINANCIAL PLANNING 2E, Wiley, 2017. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/rmit/detail.action?docID=4857365

, RMIT Classification: Trusted
BAFI 1014
TAX PLANNING
• Tax planning
– Legitimate organisation of an investor’s affairs to
minimise tax while complying with tax laws.
• Tax avoidance
– Planning which is ultimately designed to avoid taxes
payable under the law.
• Tax evasion
– Unlawfully escaping liability for, or payment of, tax by
deliberately and dishonestly evading tax.