Advise the capital gain tax consequences

Reference no: EM132612757

HI6028 Taxation Theory, Practice & Law - Holmes Institute

Assessment - Case Studies of Fringe Benefits Tax and Capital Gain Tax

Learning outcome 1: Demonstrate an understanding of the Australian income tax system, the concept of FBT, Ordinary Income, general anti-avoidance provisions and income tax administration.

Learning outcome 2: Identify and critically analyse taxation issues.

Learning outcome 3: Interpret the relevant taxation legislations and case law.

Learning outcome 4: Apply taxation principles to real life problems.

Question 1:

Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita's usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges.

For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs.

Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question

Question 2:

Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets:

1. Antique Painting that was given to Taryn by her father 5 years ago. Taryn's father bought it on 20 August 1984 for $2,500. Taryn sold it on 1'st June 2020 for $25,000

2. Taryn sold her car (Toyota Corolla) for the amount of $12,000 on 20'th May 2020, she bought on 1'st January 2015 for the amount of $20,000

3. Taryn sold her Harry Potter's collection for the amount of $1,500 on 4'th January 2020, she bought it second hand on 10'th October 2018 for $350.

4. Taryn sold her gold necklace for $2,000 on 20'th March 2020, she bought it for $1,200 on 8'th August 2018

5. Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994

Advise the Capital Gain Tax Consequences for the above transactions, please have a look at the matrix below on how to answer the question

Attachment:- Case Studies of Fringe Benefits Tax.rar

Reference no: EM132612757

Questions Cloud

Regression and correlation : Multiple regression analysis is widely used in business research in order to forecast and predict purposes. Does the regression fit the data well?

Discuss the transmission of diseases : Discuss the transmission of diseases and use your own case study applying term like epidemic, endemic, pandemic.

Calculate the gross margin or profit on sales : Calculate the gross margin/profit on sales. Gross sales 364000. Sales returns and allowances 66000. Opening inventory 62000. Purchase returns 7,600

Specific steps of the experiment : How do it conduct an experiment that will show how a certain liquid will kills bacterial cells. Using Robert Koch's culture techniques.

Advise the capital gain tax consequences : Advise the Capital Gain Tax Consequences for the above transactions, please have a look at the matrix below on how to answer the question

Explain why inventory costs and inventory levels : Explain why inventory costs and inventory levels have declined relative to GDP over the last 20 years. Is this beneficial to the economy?

Amount of substrate during a chemical reaction : What happens to the amount of substrate during a chemical reaction

What amounts should appear in the income statement : What amounts should appear in the 2013 income statement and on the closing 2013 balance sheet in respect of this bill? Record these transactions

How each fundamental aspect of management : Provide an example of how each fundamental aspect of management might be carried out in this scenario.

User Account

All Pages