Corporate tax fundamentals

Companies are important structures and are taxpaying entities. As a tax adviser it is critical for your clients that you understand how a corporation operates and how the income tax law impacts these operations. While there are many similarities, there are also some differences when compared to how individuals like you are taxed.

In this unit, you will learn about fundamental topics that are relevant to corporate entities from a taxation perspective. You will understand the basic legal concepts and definitions relevant to a corporation and where important differences from these exist for income tax purposes. You will be introduced to the key income tax topics that are applicable to corporate entities, the relevant tax rates and tax payment calculation requirements. For example, you will learn about dividends and the imputation system that operates in Australia for company distributions, and when other payments are treated as dividends for tax purposes. You will also gain an overview of how income tax losses arise and are used in a company context.

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Unit details

Level: Professional

Estimated learning duration: 10 hours

CPD: 10 hours

Assessment: Part 1: 20 multiple choice questions within 60 minutes. 75% pass mark.
2 attempts permitted.

Part 2: 6 scenario-based multiple choice questions within 45 minutes. 80% pass mark.
2 attempts permitted.

Assumed knowledge:

An understanding of the taxation of income and income tax deductions and an awareness of the CGT regime and the deductions available under Division 40 ITAA97 prior to undertaking this unit is recommended.

Learning outcomes:

Calculate a company’s tax payable/refundable in a range of non-complex scenarios.
Apply the franking legislative provisions in non-complex scenarios.
Determine the taxation consequences for a tax entity in receipt of a dividend from an Australian resident company.
Apply the company loss legislative provisions in a non-complex scenario.

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Corporate tax fundamentals

Corporate tax fundamentals

Unit details

Learning outcomes: