The Road To Communism Karl Marx. Over The Years, People

The Road to Communism: Karl Marx Over the years, people have interpreted Karl Marx’s work incorrectly and sometimes only partially. Since his explanation of communism, people have changed what they think communism really is. In present day if someone tells someone they are communist, they picture a society oppressed by its government. They picture removal of all their private belongings and burglary of their finances to be distributed amongst society as a whole. Societies and governments have over simplified Karl Marx’s description of communism and altered some of it to fit their situations. In Marx’s piece, he first states his initial views of how society is, then he analyzes the issues and contradictions within capitalism, and then†¦show more content†¦Marx explains that men produce these ideas, and they are, therefore, dependent on the historical time period, for men’s thoughts change. These ideas that seem so important and detrimental to socie ty do not decide what men are because men are defined by their production. â€Å"Men are the producers of their concepts†¦Consciousness can never be anything else than conscious existence, and the existence of men is their actual life-process† (Denise – Marx 190). Marx describes that these supernatural ideas and moral dilemmas are simply decided based on economic status. Marx continues this by explaining that in order to define reality, one must not do this based off what men think and say, but one must focus on what men do. â€Å"We set out from real, active men, and on the basis of their real life-process we demonstrate the development of the ideological reflexes and echoes of this life-process† (Denise – Marx 190). Marx describes all of this to say that these things are defined based on the specific society’s economic status. Meaning that men are defined not by their moral or religious values, but by their production and their process. Marx defines these times in history through whether they had a class system or not. He titles three times in history: the primitive, the ancient, and then the medieval. The primitive was the tribal way of living; people lived for their community. There was no division of labor; each person in the tribe wereShow MoreRelatedThe Three Major Philosophies Established During the 1900s Essay1335 Words   |  6 Pagessocialism, communism, and fascism. Socialism was never officially promoted, but the Bolsheviks, the elite group when Lenin was in power in Russia, thought socialism could be achieved by moderate reforms such as higher wages, increased suffrage, and social welfare. Communism was promoted by Lenin, his successor, and Stalin. Lenin developed the New Economic Policy, or NEP. Lenin just saw the New Economic Policy as a temporary retreat from communism. His successor put the Soviet Union back on the road to â€Å"pure†Read MoreThe Cold War And The Soviet Union1160 Words   |   5 Pagesconflicts and wars fought over communism and capitalism. One of the longest and intense conflicts was the Cold War. â€Å"The Cold War was a nearly 50-year long period of tense relations between the United States and the Communist-ruled Soviet Union. The Cold War began almost immediately after World War II and ended with the 1991 dismantling of the Berlin Wall and the dissolution of the Union of Soviet Socialist Republics† (Turner, 2001-2014 p.1). The Soviets fought to expand communism and destroy capitalismRead MorePolitical Issues In Russia1071 Words   |  5 PagesRussia faces on the road to become a democratic state and if the country can achieve it. The stability of a democratic State is quite fragile and can be undone if not properly managed and understood. To look at modern problems which Russia faces today, it is better to go through Russian history and summarize it. After the socialist revolution which happened in 1917 in Russia, the system of the Russian state was changed completely by new leaders who came to power. Communists and people who followed ideasRead MoreApplication of Marxist Theory of Socialism in Philippine Setting1647 Words   |  7 Pagessuggest, however, that we change our system to socialism. It seeks, rather, to present information and discussion for consideration by those who are interested in expanding their knowledge. Socialism is one of the two offshoots of Karl Marxs writings; the other being communism. It is both a critical analysis of and an answer to the excesses of capitalism. Its basic theoretical foundations are dialectical materialism, labor theory of value, and class struggle. It embodies two primary concepts, namelyRead MoreThe Death Of An Animal Farm By George Orwell1734 Words   |  7 Pagesanimal in England knows the meaning of happiness or leisure after he is a year old. No animal in England is free. The life of an animal is misery and slavery: that is the plain truth† (Orwell, 5). Here, Old Major outlined his political and economical beliefs in which he could foresee the rebellion. Karl Marx, similar to Old Major, influenced and inspired many people with his political ideology of a better system. â€Å"In 1848, Marx and fellow German thinker Friedrich Engels published â€Å"The Communist ManifestoRead MoreCommunism And Eastern Europe : World War II1385 Words   |  6 Pag esCorey Greenblat Dr. Nestorova International Studies 2251 6 October 2014 Communism Supremacy in Eastern Europe: World War II shocked and dismantled many Eastern European countries leaving Europe in a state of shock, with many unanswered, open ended questions. Buildings were blown up, streets cracked, people slaughtered, and governments destroyed. As turmoil struck Eastern Europe, an opportunity arose for a new political system to come into power. However, this process is never a simple one; two commonRead MoreMode of Production2758 Words   |  12 PagesIn the writings of Karl Marx and the Marxist theory of historical materialism, a mode of production (in German: Produktionsweise, meaning the way of producing ) is a specific combination of: * productive forces: these include human labour power and available knowledge given the level of technology in the means of production (e.g. tools, equipment, buildings and technologies, materials, and improved land). * social and technical relations of production: these include the property, powerRead MoreThe West : A History, Volume 2, And Power1611 Words   |  7 Pagesleads their people alone will be successful, for a prince who needs help will never have the respect of his subjects (27). Coincidentally, Machiavelli’s theory come to be most ineffective of political ideologies because of its failure to persist in governmental systems past the age of absolutism, and it being to blame for an age of revolution. Three centuries after Machiavelli, in 1848, Karl Marx’s Communist Manifesto presents a new political theory of government coined communism. Communism is a, â€Å"socialistRead MoreEssay about Comparative Economic Systems1244 Words   |  5 Pagesprocess of law.† Under capitalism, basic decisions about what to produce and how to produce it are left to private decision-makers. A person who takes the initiative and risk of starting or expanding a business is called a n entrepreneur. Due to several people being free to enter a new business at any time, a number of companies usually offer the same product or service. Competition among multiple sellers helps to hold down prices and keep quality high, since customers are likely to buy from the companyRead MoreUnemployment in Australia Through a Conflict Perspective.1340 Words   |  6 Pagesindividuals in society see it as a problem. Unemployment in Australia is considered to be a social problem, due to it affecting around 6 percent of Australia’s population (Australian Bureau of Statistics, 2014). If unemployment only affected a few people then it could be said that those individuals being lazy or could not hold down a job, but due to it affecting a majority of society it then becomes a social problem. Unemployment can affect families drastically from suicidal tendencies, marriage

Women s Influence On The Early Years Of Jazz - 1181 Words

There are many important women who significantly contributed to Jazz and left a legacy of women artists. In the early years of Jazz, it was considered a male professional and women who tried to be part of Jazz faced obstacles. This was from male musicians, critics, record producers, club-owners, concerts and also racism. Despite the obstacles, women forced their way to be part of Jazz and pushed for equality and visibility (â€Å"Gender Discrimination, 2014). Dolly Adams was a pianist and multi-instrumentalist in the New Orleans Jazz scene. She was recognized for her skill on the piano, playing, drums, guitar and trumpet. She was born and raised in New Orleans’ Algiers neighborhood. Dolly Adams had the opportunity to play with some of the great jazz performers of her time such as Louis Armstrong, Joe â€Å"king† Oliver and others (Hobbs, 2013). Adam faced obstacles for being a woman in male-dominated field of Jazz was. Her role as a wife was also full of obstacles. Adam reportedly got married in 1922, and due to pressure from her husband left her role as a pianist for over two decades. She returned to Jazz during 1950s and 1960s ( Hobbs, 2013). Lil Hardin Armstrong, who was also known as â€Å"Hot Miss Lil† was a pianist, composer, arranger and a bandleader in the 1920’s, before she married Louis Armstrong. Lil and Louis were bands mates in Oliver’s Creole Jazz Band. Early on, she performed in Sugar Johnny’s Creole Orchestra, Freddie Keppard’s band and her own band at the DreamlandShow MoreRelatedThe Jazz Age : The Roaring 20 S1363 Words   |  6 PagesThe Jazz Age: The Roaring 20’s During the late 19th and early 20th centuries, jazz was the turning point or revolution and evolution within social stratification and the ideals of accepted normalities, bringing about a change within society and allowing African Americans to be commonplace among higher social classes and to exceed society’s standards. Ragtime, a more formally structured style of music, birthed jazz into this new era. Ragtime is more musically composed than jazz and most often foundRead MoreGender, Racial, Violence, And Other Forms Of Discrimination1438 Words   |  6 Pagesin the 21st century and how women have had more of an influence in music than people actually realize. Men have dominated the music industry and business but women have been the underlying reason as for why men and other females have been so successful in the music scene. One of the first great jazz musicians ever to live was Louis Armstrong, known for his singing, trumpet playing, and his creation of improvisation. Armstrong started playing at age 13 and ten years later married Lil Hardin whoRead MoreWhite Supremacy And The Jim Crow Laws1369 Words   |  6 Pageswhite supremacy in the south where ninety percent of African Americans lived until the Great Migration north that gave way to the Harlem Renaissance. Which was a movement in the 1920 s and 1930 s that opened the discussion on a minority in America. This movement gave a voice to civilians who were slaves sixty years earlier. Even though the Harlem Renaissance was not a true renaissance, the period did serve to stimulate African American writing as well as a new view into politics. They expressedRead MoreThe Jazz Age By Toni Morrison1700 Words   |  7 PagesThe 1920’s in American history seem to be very exciting. It was the height of the Harlem Renaissance, where African American lit erature, poetry, art and music emerged. You had all this African American talent growing and blasting into the mainstream. Historians refer to this time period as â€Å"The Jazz Age†. When jazz music was introduced to the public at clubs and dance halls it took off! People were either captivated by it, or appalled by it. Jazz was all about movement; it was driven by syncopationRead MoreAn Analysis of the Prologue to Nathaniel Hawthornes The Scarlet Letter1278 Words   |  5 Pagesof money can produce. Almost all of the various forms of music that garnered commercial success in the United States in the 20th century began as representing a countercultural movement. Such was the case with the rock and roll movement of the 1960s that took place and which was the voice and spirit of rebellion that was the culmination of many different areas of social unrest related to the Vietnam War to a newfound sense of womens rights. Young people throughout the country were no longer satisfiedRead MoreThe Blues, By Bessie Smith And Billie Holliday1744 Words   |  7 PagesMusic is such a beautiful creation, the way the melody, rhythm, tempo, all mix together to become a masterpiece. One specific genre of music, the blues, was heavily popular in the early 20th century. The blues is a tradition-oriented music style from the rural Southern African-American origin (â€Å"Jazz in America†, n.d. ). It usually had secular content, which is disparate from how it was when it first began. Blues musi c originated in plantations, where slaves sung, using it as a mental escape methodRead MoreThe Great Depression Of The 1920 S1706 Words   |  7 PagesAt the beginning of the 1920’s, the United States was beginning to recover the economy now that World War I was over. During this decade, America became the richest nation in the world. The 1920’s, also referred to as the roaring twenties, was a period of dramatic and social change. More Americans during this era lived in the city rather than on a farm. The nation’s wealth doubled throughout the roaring twenties, and lead the Stock Market Crash of 1929 where the Great Depression followed after thisRead MoreEssay On Duke Ellington1506 Words   |  7 PagesEllington’s name, but it is only his nickname, which children gave him when he was a little boy for his aristocratic manners and the ability to dress elegant things. When Duke was seven years old, he began his piano training and took lessons from Mariett a Clinkscales. (Ruhlmann) Duke Ellington was an American jazz pianist, composer, and orchestra leader. He was more than just a musician, he was an artistic legend of his generation. In the summer of 1914, he wrote his first composition â€Å"Soda FountainRead MoreThe Blues : A Very Short Introduction Essay1689 Words   |  7 Pageswere subjects that blues artists commonly decided to incorporate into lyrics. Yet, what was the true motivation behind this transcendent line of music? The blues has far reaching roots in American history as it swept through the United States in the early 20th century, particularly within African-American communities. It materialized as African American culture was infused in the melting pot of the American South. Indeed, according to leading writer Francis Davis the blues was a result of â€Å"one groupRead MoreThe Birth, Life, And Resurrection Of Swing1673 Words   |  7 Pagesof the social, political, and economic undercurrents of its time. The term â€Å"Swing† was originally coined not for the dance, but for the music. Swing music was born during the Great Depression, while many bands had been experimenting during the early Roaring Twenties it was suggested that the â€Å"†¦summer of 1929 began the journey toward the summer of 1935 and the official arrival of the Swing Era† (Hennessey, 123). While the Great Depression was a time of increased poverty and unemployment, the formation

Global Perspectives on E-Commerce Taxation Law

Question: Discuss about the Global Perspectives on E-Commerce Taxation Law. Answer: Introduction: Section two subsections 6(1) of the Income Tax Assessment Act 1936 defines a resident of Australia as a person, other than an organization whose domicile is in Australia, or who has been in Australia, continuously during more than one-half of the year of income (Picciotto, 2007). The section further defines a resident of Australia as a person who is an eligible employee under the Superannuation Act 1976 or is the spouse or a child under 16 years of age of such a person. Ideally, a resident of Australia is an individual who has a permanent home in Australia and was present in Australia for a day in the year of income (Basu, 2007). The person is also a resident of Australia he or she has no permanent home in Australia but was present in Australia for a total of 183 days or more in the year of income or an average of 122 days or more in the year of revenue plus two preceding years. In Henderson vs. Hendersons case of domicile, the Supreme Court considered what was required to establish a residence at law to rule this case. Here, the court set that clear evidence was necessary to establish a change of domicile (Nielson, and Harris, 2010). This appeal of Henderson vs. Henderson arises where the Madison County Chancery Court orders the equitable distribution of Henderson's property after Mary and Howard chose to divorce. In first ruling was held in 1994 where Mary was granted a divorce from Howard on the ground of adultery. During this decision, she was given custody of their minor child, a variety of assets that was valued more than $ 350,000, and alimony of $ 683 per month. Howard, on the other hand, was awarded assets lower than $ 20,000. This Court, however, granted Howard's petition for writ of certiorari, citing that the chancery court failed to classify assets as marital or non-marital. The chancery also neglected to determine marital domicile. On this app eal, the chancery divided the marital estate equally between Mary and Howard and held that they were not eligible for periodic alimony. According to this case of Julie, she did not have a permanent home in Australia. Her year of income was 2016, and she lived temporarily in Australia (Lang, 2014). However, since she was present in Australia for 365 days, she would be considered a resident of Australia in the year of income. This is because she has surpassed the principle of 183 days or more to be considered a resident of Australia. This question, however, tells us that we do not need to find the temporary residency rules. This leaves us with the permanent state of residency that says that one would be considered a resident of Australia if he had an ongoing home in Australia and was present for at least a day in the year of income. With this rule in mind, Julie would not be considered a resident of Australia, as she has no permanent home in Australia. In this case study, only the amounts that were received by Julie in the year of income would be assessed. During the year ended 30 June 2016 Julie, Julie made six transactions. First, she received a salary from employment in Canada before 31 August 2015, which was equivalent to AUD$5,500. Since this amount was earned before 31 August 2015, it would not be included in her assessable income (Picciotto, 2007). Second, she received a salary paid by a fruit grower in Bundaberg of AUD$6,000. Since this amount was received in the year of income in Bundaberg, it would be included in her assessable income. Third, Julie won a $250 prize for winning the annual watermelon-eating contest in Bundaberg. Since this award was earned in the year of revenue, it would be included in her assessable income but taxed on a withholding tax rate of 20%, which is final. Fourth, she received interest on her Australian bank account of $180, which should be included in her assessable income as it was received in the year of revenue. Julie is required to pay a withholding tax on this interest (Basu, 2007). Fifth, she received interest on her Canadian bank account equivalent to AUD$200. This amount should be included in her assessable income. However, since $20 withholding tax had been deducted by the Canadian bank before crediting her account on 1 March 2016, it should not be included in her assessable income. Lastly, Julie received $220 from the sale of excess clothing, sleeping bag and other personal items on eBay before Julie leaving Australia. This amount is taxed at source, and therefore it should not be included in her assessable income. In conclusion, Julie would be assessed on the salary she received from the fruit grower in Bundaberg of AUD$6,000, the $250 prize that she won in the annual watermelon eating contest in Bundaberg, and the interest she received on her Australian bank account of $180. This is because these amounts were realized and received in the year of income and no withholding tax had been charged on the interest she received on her Australian bank account (Lang, 2014). According to the income tax act, if compensation were paid for the loss of business, the compensation would be for the loss of capital asset (Reinhardt, and Steel, 2006, p.1). The income tax assessment act s8-1 states that any losses that are of capital nature are not deductible. However, the receipts for compensation would be deductible under s8-1, as they would be considered as ordinary income. In this case, Ted received $45,000 in compensation for the permanent loss of access to the street at the rear of his business premises. Since this receipt was because of permanent loss, it would be deductible for tax purposes. In this same scenario, Ted was also compensated $15,000 for the loss of profits caused by the temporary disruption to his business. This amount would be assessed for tax purposes as seen in Carpark v FCT (1966). Second, Ted received $50,000 for signing a contract with a clothing company to only stock their brand of protective work clothing (Zelinsky, 2010, p.1289). He was also not to stock any other brand apart from the one stated in the contract. According to re Seagate Technology, LLC, 497 F case, the owner of the patent was required to prove the defendant acted without taking into consideration his actual state of mind and that he knew of the high likelihood of the infringement of the patent. In this case, the court ruled that the Seagate test was unduly rigid and that payment of damages was necessary. Section 284 of the income tax assessment act was also used to award damages based on infringement of the patent (Reinhardt, and Steel, 2006, p.1). The amount of $50,000 received by Ted should, therefore, be included in the assessable income for tax purposes. Third, Ted received a large order from a mining company to supply the companys employees with uniforms where he issued an invoice for $15,000 for the order on 25 June 2016. Since the amount was received on 15 July 2016, it should not be included in the assessable income of the year of revenue ends 30 June 2016 as seen in subsection 25(1) of the income tax assessment act 1936 (Kirchler, Niemirowski, and Wearing, 2006, pp.502-517). Finally, on 28 May 2016 Ted placed an order for $45,000. The goods were, however, shipped on 10 June 2016 and arrived at Teds shop on 5 July 2016. Since the shipping terms were FOB, Ted took ownership, control, and risk of the clothes once they were loaded onto the ship. The goods were loaded on 10 June 2016 while the year of income ended as at 30 June 2016. This implies that the cost of the stock of $45,000 should be included in the assessable income as payment for taxation purposes (Handley, and Maheswaran, 2008, pp.82-94). In conclusion, Ted's allowable deductions would include the compensation of $45,000 for the permanent loss of access to the street at the rear of his business premises, and the compensation of $15,000 for the loss of profits. They would also include an amount of $50,000 for signing a contract with a clothing company, and the cost of stock of $45,000. This is because these costs were incurred by Ted in the year of income and they were suffered to realize the taxable income (Handley, and Maheswaran, 2008, pp.82-94). According to SSAct section 1075 of the income tax assessment act 1997; only expenses directly related to the ordinary business operations would be deductible (Dai, Maydew, Shackelford, and Zhang, 2008, pp.709-742). These deductible expenses would include those incurred while earning the taxable income for the year of revenue or such expenditures necessary for conducting the business with the purpose of earning the taxable income. SSAct section 7(2) states that capital expenditures, investments, superannuation contributions for the partner of the partnership, obsolescence and any donations to charitable institutions are not unacceptable business deductions (Dai, Maydew, Shackelford, and Zhang, 2008, pp.709-742). In this case study, John and Denise incurred business deductions such as a fee to establish the company structure of $1,200, a feasibility study of $660, loan establishment fee of $1,500, and construction cost of the building of $98,000, which was incurred in 2005 by the company that owned that building before DDC (King, and Fullerton, 2010). The firm also other business deduction such as small commercial premises of $450,000, a hydro bath of $900, fencing of $10,000, legal fees of $6,000 to defend itself against the closure notice, veterinary fees of $800, and a donation of $5,000 to the RSPCA. The income tax assessment act 1997 states that allowable deductions are those deductions that are incurred on normal business operations that are they are earned as a result of the taxable income or for conducting business operations for the purpose of earning the taxable income. John and Denise are partners in the DDC business (King, and Fullerton, 2010). This means that they would be taxed on any remuneration paid to them by the partnership. They would also be taxed on any interest on capital less interest on drawings and the share of adjusted taxable income after allowing or deducting salaries, bonuses, commissions, and interest on capital. In this case, John and Denise contributed $100,000 each to the partnership. Interest on this amount would not be taxable in the business, but rather it would be taxed on John and Denise, which means that it is not an allowable deduction for the firm. John and Denise incurred a fee of $1,200 to establish the company structure. Since this amount was incurred to conduct the business to earn the taxable income, it would be an allowable deduction for tax purposes (Spisto, 2008). Second, they conducted a feasibility study at the cost of $660. This feasibility study was used to determine the viability of the project. This means that it is an expense incurred to conduct the business to earn the taxable income. It should, therefore, be included as an allowable deduction for taxation purposes. Third, John and Denise a loan establishment fee of $1,500. This amount was used to acquire a loan of $300,000 to be used to finance the Doggy Day Care Pty Ltd business operations. This amount should, therefore, be included as an allowable deduction as it was incurred to conduct the business to earn the taxable income (Prentice-Hall, Inc, 2008). Fourth, a construction cost of the building of $98,000 was incurred in 2005 by the previous owners of the b uilding. Since this amount was not born by the Doggy Day Care Pty Ltd and in the year of income, it should not be accepted as an allowable deduction. Fifth, John, and Denise incurred $450,000 to purchase small commercial premises. These small industrial facilities were used to conduct the doggy day care. This implies that since they were used to earn the taxable income, they would be included as allowable deductions for income tax purposes (Gurney, 2006, p.259). Sixth, John, and Denise bought a hydrobath for $900. This would be included as an allowable deduction since it was used to conduct the business operations that is bathing the dogs for the purpose of attaining the business objectives. Seventh, the Doggy Day Care Pty Ltd incurred a cost of $10,000 to fence the premises. Ideally, renovation is a disallowable expense as it is not an ordinary business operation. This means that it should not be deducted for taxation purposes (Freudenberg, Tran-Nam, Karlinsky, and Gupta, 2012, p.677). Eighth, John, and Denise incurred legal fees of $6,000 to prevent the closure of company out of the lawsuit presented by the neighbors. This amount is not an ordinary business operation, and it should therefore not be allowed for tax purposes. Ninth, John, and Denise incurred veterinary fees of $800 to prevent a lawsuit by one of the neighbors whose dog got ill. Since this fee is not a normal business operation, it should not be allowed for income tax purpose s (Elliffe, and Yin, 2011). Lastly, John and Denise donated $5,000 to the RSPCA. Since this is a donation to a charitable animal organization, it should not be taxed which means that it is not an allowable deduction. In conclusion, the amounts that should be included in the taxable income are the fee of $1,200 to establish the company structure, the feasibility study of $660, and the loan establishment fee of $1,500. The cost of $450,000 incurred while purchasing the small commercial premises and the cost of the hydrobath of $900 should also be assessed. All the other expenses incurred by John and Denise should not be included in the assessable income as they are not conducted for the normal or ordinary business operations (Hoffman, Raabe, Smith, and Maloney, 2013). According to S 48 of the income tax assessment act 1997, capital gains, the cost of the improvement, PMS fee are held to be deductible expenditure (Desai, and Dharmapala, 2008, pp. 13-30). This is evident in the case of 52 SOT 327 (Mum.) (Trib.). In this case, the assessee earned capital gain from the sale of his ancestral land. He claimed exemption from taxes in according to u/s 54F towards the four flats he had purchased that were to be converted into one residential building. The court allowed the exemption on the basis that the flats were separate and independent residential buildings. The tribunal held that if the requirement of the family of the assessee were met by merging the four apartments into one residential unit, the assessee would be allowed to claim exemption as it would be deemed as a capital gain (Devereux, 2008, pp.698-719). Roy had previous capital losses. In 2010, Roy had a capital loss of $5,000 while in 2014; he had a capital loss of $15,000. These losses are to be carried forward and offset against the capital gains of 2016 (Di John, 2006). Roy has two assets that is a holiday home and a diamond ring, which he inherited from his mother. On 20 April 2016, Roy sold his luxury penthouse apartment for $250,000 in cash, and he also received win a luxury boat that had a market value of $630,000. Roy had initially purchased the house in 2005 for $750,000. During this purchase, he incurred stamp duty and legal fees on the purchase of $10,000 and the sale of $1,000. He also committed council rates insurance of $15,000 during the period of ownership. One way of calculating the capital gains is by taking the selling price of the asset minus the original price of the property (Tanzi, 2014). The price of sale and the buying price must include all fees and expenses relating to the purchase and selling of the holi day home as shown below. The capital gain on the sale of the holiday home would, therefore, be as shown in the equations below. Roy also had a diamond ring, which his mother had purchased in 1997 for $2,500. At the time his mother passed away that is in 2014, the diamond ring had a market value of $5,000 (Burman, 2010). Roy sold the ring for $5,800 on 28 February 2016 at an auction fee of $580. Here, a different technique would be used to calculate the capital gain of Roy. This technique is known as the indexation method of calculation of capital gains. This method is used if the asset was acquired before 21 September 1999 and the asset was owned for twelve months or more. Ideally, inflation is bound to affect the cost base (Jin, 2006, pp.1399-1431). It is therefore recommended that the cost base should be indexed to determine its current value as at the year of income. The indexation factor will be as shown below. The indexed purchase price would, therefore, be calculated by taking the total purchase price multiplied by the indexation factor as shown below. The capital gain or loss would be the selling price of the diamond ring plus the auction fee less the indexed purchase price as shown below. To get the capital gain or loss that would be included in Roy's assessable income, we will sum up all the previous capital loss with the recent capital loss and gain as shown in the equation below. Roy would, therefore, have a capital gain of $105,380, which would be included in his assessable income for the income year ended 30 June 2016 for capital gains tax purposes. This capital gain was realized after deducting the capital losses from the prior periods (Jin, 2006, pp.1399-1431). References Basu, S., 2007.Global perspectives on e-commerce taxation law. Ashgate Publishing, Ltd. Retrieved on 29 December 2016. Burman, L.E., 2010.The labyrinth of capital gains tax policy: A guide for the perplexed. Brookings Institution Press. Retrieved on 29 December 2016. Dai, Z., Maydew, E., Shackelford, D.A. and Zhang, H.H., 2008. Capital Gains Taxes and Asset Prices: Capitalization or Lock?in?.The journal of finance,63(2), pp.709-742. Retrieved on 29 December 2016. Desai, M.A. and Dharmapala, D., 2008. Tax and corporate governance: an economic approach. InTax and corporate governance(pp. 13-30). Springer Berlin Heidelberg. Retrieved on 29 December 2016. Devereux, M.P., 2008. Taxation of outbound direct investment: economic principles and tax policy considerations.Oxford Review of Economic Policy,24(4), pp.698-719. Retrieved on 29 December 2016. Di John, J., 2006.The political economy of taxation and tax reform in developing countries. United Nations University. World Institute for development economics research (UNU-WIDER). Retrieved on 29 December 2016. Elliffe, C. and Yin, A., 2011. Hybrid entity double taxation: A case study on the taxation of trans-Tasman limited partnerships.Revenue Law Journal, 21(1). Retrieved on 29 December 2016. Freudenberg, B., Tran-Nam, B., Karlinsky, S. and Gupta, R., 2012. Comparative Analysis of Tax Advisers' Perception of Small Business Tax Law Complexity: United States, Australia and New Zealand, A.Austin. Tax F.,27, p.677. Retrieved on 29 December 2016. Gurney, P.B., 2006. Corporate Taxation in Australia, Hong Kong, and Singapore: Observations on Some Jurisdictional and Operational Distinctions. Hong Kong LJ,36, p.259. Retrieved on 29 December 2016. Handley, J.C. and Maheswaran, K., 2008. A measure of the efficacy of the Australian imputation tax system.Economic Record,84(264), pp.82-94. Retrieved on 29 December 2016. Hoffman, W.H., Raabe, W.A., Smith, J.E. and Maloney, D.M., 2007.West Federal Taxation: Corporations, Partnerships, Estates, and Trusts. Southwestern Pub. Retrieved on 29 December 2016. Hoffman, W.H., Raabe, W.A., Smith, J.E. and Maloney, D.M. eds., 2013.Corporations, Partnerships, Estates Trusts. Southwestern, Cengage Learning. Retrieved on 29 December 2016. Jin, L., 2006. Capital gains tax overhang and price pressure.The journal of finance,61(3), pp.1399-1431. Retrieved on 29 December 2016. Kirchler, E., Niemirowski, A. and Wearing, A., 2006. Shared subjective views, intent to cooperate and tax compliance: Similarities between Australian taxpayers and tax officers.Journal of economic psychology,27(4), pp.502-517. Retrieved on 29 December 2016. King, M.A., and Fullerton, D., 2010.The taxation of income from capital: A comparative study of the United States, the United Kingdom, Sweden and West Germany. University of Chicago Press. Retrieved on 29 December 2016. Lang, M., 2014.Introduction to the law of double taxation conventions. Linde Verlag GmbH. Retrieved on 29 December 2016. Nielson, L. and Harris, B., 2010.Chronology of superannuation and retirement income in Australia. Department of Parliamentary Services. Retrieved on 29 December 2016. Picciotto, S., 2007. Constructing compliance: Game playing, tax law, and the regulatory state.Law Policy,29(1), pp.11-30. Retrieved on 29 December 2016. Prentice-Hall, Inc, 2008.Prentice Hall's Federal Taxation: Corporations, partnerships, estates, and trusts. Prentice Hall. Retrieved on 29 December 2016. Reinhardt, S. and Steel, L., 2006. A brief history of Australia's tax system. Economic Round-up, (Winter 2006), p.1. Retrieved on 29 December 2016. Spisto, M., 2008.Tax Law. Thomson Lawbook Co. Retrieved on 29 December 2016. Tanzi, V., 2014. Inflation, Indexation and interest income taxation.PSL Quarterly Review,29(116). Retrieved on 29 December 2016. Taseska, A., 2008. Overview of public-private partnerships in Australia: financing, regulation, auditing and proposed improvements.Journal of Contemporary Issues in Business and Government, The,14(2), p.79. Retrieved on 29 December 2016. Zelinsky, E.A., 2010. Citizenship and Worldwide Taxation: Citizenship as an Administrable Proxy for Domicile.Iowa L. Rev.,96, p.1289. Retrieved on 29 December 2016.