+91-9519066910
USA: +1(585)6662225, IN: +91-7503070001, IN:+91-9519066910

Assignment

Computing Skills Assignment Help

Matlab Assignment Help

ACC708 Taxation Law

Rating:
ACC708 Taxation Law

 ACC708 Taxation Law 

 

Tutorial 9 Questions

x             FBT and CGT Revision

 

x             Tax Accounting and Trading Stock

 

If further facts are needed when answering the following problems, students should state what they are and why these facts are needed. The discussion should include an analysis of the pertinent sections of the relevant legislation, rulings and the relevant case law.

 

FBT Revision Questions

 

Question 1

Julie Duff accepts an offer of employment made by Aussie Models Pty Ltd to be their new marketing manager. Her salary package includes:

 

x      The use of a gym. The gym is located several kilometres from the premises of Aussie Models Pty Ltd. The cost to attend the Gym is $1,950 per annum. No part of the cost would have been deductible to Julie under the Income Tax Assessment Act 1997 or 1936 had she paid the amount. Aussie Models Pty Ltd is entitled to claim the input tax credit for GST purposes.

 

Required:

 

Advise Aussie Models Pty Ltd of the taxable value (rounded to the nearest dollar) of the fringe benefit for the FBT year ended 31 March 2013.

 

Question 2

 

Julie Duff accepts an offer of employment made by Aussie Models Pty Ltd to be their new marketing manager. Her salary package includes:

 

x      Reimbursement of her home cleaning expenses. The cost is $4,200 per annum. No part of the expense would have been deductible to Julie under the Income Tax Assessment Act 1997 or 1936 had she paid the amount. Aussie Models Pty Ltd is entitled to claim the input tax credit for GST purposes.

 

Required:

 

Advise Aussie Models Pty Ltd of the grossed up taxable value (rounded to the nearest dollar) of the fringe benefit for the FBT year ended 31 March 2015.

 

Question 3

 

Julie Duff accepts an offer of employment made by Aussie Models Pty Ltd. Her salary package includes:

 

x    Reimbursement of her mobile telephone account. The cost is $6,000 per annum. Julie would have been entitled to claim a deduction for the full amount under the Income Tax Assessment Act 1997 or 1936 had she paid the amount. Aussie Models Pty Ltd is entitled to claim an input tax credit for GST purposes.

 

Required:

 

Advise Aussie Models Pty Ltd of the grossed up taxable value (rounded to the nearest dollar) of the fringe benefit for the FBT year ended 31 March 2014.

 

Question 4

 

Julie Duff accepts an offer of employment made by Aussie Models Pty Ltd to be their new marketing manager. Her salary package includes:

 

x      Reimbursement of her home electricity account. The cost is $1,200 per annum. No part of the expense would have been deductible to Julie under the Income Tax Assessment Act 1997 or 1936 had she paid the amount. Aussie Models Pty Ltd is entitled to claim the input tax credit for GST purposes.

Required:

 

Advise Aussie Models Pty Ltd of the Fringe Benefits Tax payable (rounded to the nearest dollar) of the fringe benefit for the FBT year ended 31 March 2016.

 

Question 5

 

Julie Duff accepts an offer of employment made by Aussie Models Pty Ltd to be their new marketing manager. Her salary package includes:

 

x      An interest free loan of $225,000. She used $25,000 to purchase shares in Witch Bank and the balance ($200,000) to pay off her debts to her family in relation to her home renovation. Aussie Models Pty Ltd is not entitled to claim the input tax credit for GST purposes.

 

Required:

 

Advise Aussie Models Pty Ltd of the Fringe Benefits Tax payable (rounded to the nearest dollar) of the fringe benefit for the FBT year ended 31 March 2017. Assume the loan was made on 1 April 2016.

 

Question 6

 

On 17 December 2015 XYZ Pty Limited (“XYZ”) purchased a Commodore motor car for $42,250. The car was for the exclusive use of one of XYZ’s star employees, Joanne. Between the date of purchase and 31 March 2016 Joanne travelled 8,150 kilometres in the Commodore.


 
The company paid all of the above expenses with the exception of petrol which was paid for by Joanne. This amount was not reimbursed and Joanne provided the required declaration to her employer. On the day of purchase a rear parking camera was fitted to the Commodore at a cost of $1,000. A logbook was kept showing that Joanne travelled 6,400 kilometres during the relevant fringe benefit tax year for business purposes. XYZ did not make an election under section 10 of the Fringe Benefits Tax Assessment Act 1986. XYZ is entitled to claim the input tax credit for GST purposes.

Required:

 

Advise XYZ of the taxable value (rounded to the nearest dollar) of the fringe benefit for the FBT year ended 31 March 2016.

 

Question 7

 

Julie Duff accepts an offer of employment made by Aussie Models Pty Ltd to be their new marketing manager.

 

x      Julie received an interest free loan of $225,000 on 1 April 2016. She used $225,000 to purchase shares in Witch Bank. On 29 March 2017 Aussie Models Pty Ltd advised Julie she didn't have to pay back $25,000 of the $225,000. Aussie Models is not entitled to claim the input tax credit for GST purposes.

 

Required:

 

Advise Aussie Models Pty Ltd of the Fringe Benefits Tax payable (rounded to the nearest dollar) of the fringe benefit for the FBT year ended 31 March 2017. Assume the loan was made on 1 April 2016.

CGT Revision Questions

 

Question 1

Amanda Rockwall won a seat in Parliament and transferred to Canberra. Before moving, Amanda sold the following assets:

 All assets were purchased on 1 July 2000 and sold on 30 June 2013.

 

Required:

 

Calculate the total amount to be included in Amanda’s assessable income from these CGT events?

 

Question 2

 

On 15 January 1986 John bought an investment property. The property cost him $120,000. He spent $2,000 in stamp duty in January 1986. He sold the property in October 2014 for $320,000 as he intended to move overseas. He paid commission of $4,600 to the real estate agent and advertising costs of $400. These expenses were paid in October 2014.

 

Required:

 

(a)    Calculate John’s cost base for Capital Gains Tax purposes.

(b)    Calculate John’s indexed cost base for Capital Gains Tax purposes.

(c)     Calculate John’s reduced cost base for Capital Gains Tax purposes.

(d)    Calculate John’s Capital Gain or Capital Loss.

 

Question 3

 

On 30 September 1996 John bought a property in Terrigal NSW to use as a holiday home. The property cost $145,000. He consulted his accountant regarding the purchase and this advice cost him $300 in September 1996. In addition, he paid stamp duty of $2,750 in October 1996. John used a loan to acquire the property and paid $545 stamp duty on the mortgage in October 1996. The property was sold in September 2008 for $500,000. Costs associated with the sale included commission of $9,750 paid to the real estate agent who sold the property and advertising of $900. Both of these expenses were paid in September 2008. John incurred the following expenses in relation to his holiday home:

 

x       Interest on the loan over the ownership period totalled $18,800.

 

x       Insurance costs over the period of ownership costing $2,950.

x       Stairs leading to the second storey were repaired at a cost of $2,000.

x       Rates and land tax of $4,325 were paid during ownership of the property.

x       Interest of $3,000 was paid since October 1996 when John obtained a personal loan to refurbish the house at a cost of $31,500.

 

Required:

 

(a)    Calculate John’s cost base for Capital Gains Tax purposes.

(b)    Calculate John’s reduced cost base for Capital Gains Tax purposes.

 

Question 4

 

On 30 September 1990 John bought a property in Terrigal NSW to use as a holiday home. The property cost $145,000. He consulted his accountant regarding the purchase and this advice cost him $300 in September 1990. In addition, he paid stamp duty of $2,750 in October 1990. John used a loan to acquire the property and paid $545 stamp duty on the mortgage in October 1990. The property was sold in September 2008 for $500,000. Costs associated with the sale included commission of $9,750 paid to the real estate agent who sold the property and advertising of $900.

 

Both of these expenses were paid in September 2008. John incurred the following expenses in relation to his holiday home:

 

x       Interest on the loan over the ownership period totalled $18,800.

 

x       Insurance costs over the period of ownership costing $2,950.

x       Stairs leading to the second storey were repaired at a cost of $2,000.

x       Rates and land tax of $4,325 were paid during ownership of the property.

x       Interest of $3,000 was paid since October 1990 when John obtained a personal loan to refurbish the house at a cost of $31,500.

 

Required:

 

(a)    Calculate John’s cost base for Capital Gains Tax purposes.

(b)    Calculate John’s reduced cost base for Capital Gains Tax purposes.

 

Question 5

 

Amanda Rockwall won a seat in Parliament and transferred to Canberra. Before moving, Amanda sold the following assets:




 DOWNLOAD SAMPLE ANSWER

Details

  • Number of views:
    246
  • PRICE :
    AU$ 100.00

Submit Works

Urgent Assignment Help

Our Top Experts


Karen Betty

Holding a PhD degree in Finance, Dr. John Adams is experienced in assisting students who are in dire need...

55 - Completed Orders


Daphne Lip

Canada, Toronto I have acquired my degree from Campion College at the University of Regina Occuption/Desi...

52 - Completed Orders


Mr Roberto Tuzii

Even since I was a student in Italy I had a passion for languages, in fact I love teaching Italian, and I...

102 - Completed Orders


Harsh Gupta

To work with an organization where I can optimally utilize my knowledge and skills for meeting challenges...

109 - Completed Orders


ARNAB BANERJEE

JOB OBJECTIVE Seeking entry level assignments in Marketing & Business Development with an organization...

202 - Completed Orders


KARAN BHANDARI

Current work profile Project manager- The Researchers Hub (2nd Jan 2016 to presently working) Researc...

20 - Completed Orders


Tan Kumar Ali

Sales Assistant, Mito Marina Assigned to the Stationery dept – assisted in merchandising, stock taking...

100 - Completed Orders


Wesenu Irko

Personal Profile Dedicated and highly experienced private chauffeur. High energy, hardworking, punctua...

200 - Completed Orders


Lizzy Darley

I'm Lizzy, full time education specialist in English, Essay Writing, Economics and Maths. Having Assi...

109 - Completed Orders


CRYSTAL

HSC PREPARATION I specialise in English coaching programs for HSC students. My personalised and results-...

202 - Completed Orders