Analyse the fundamentals of tax determination

Reference no: EM131157565 , Length: word count:3000

Taxation New Zealand

Its required to answer 2-questions for 1500 words each as follows,

1. Goods and Services Tax (GST)-1500 words
2. Income Tax on Property/Land Transactions and Capital Gains Tax-1500 words.

1. Analyse the fundamentals of tax determination for individuals and business organisations.

2. Critically analyse and explain the various types of taxation such as fringe benefits tax, capital gains tax and goods and services tax.

3. Apply appropriate case laws for the tax determination for individuals and business organisations.

Question 1: Goods and Services Tax (GST)

1. The issue of "consideration" for GST purposes has received much attention in New Zealand from the following tax cases:
a. Turakina Maori Girls' College Board of Trustees and others v C of IR (1993) 15 NZTC 10,032;
b. Taupo Ika Nui Body Corporate v C of IR (1997) 18 NZTC 13,147;
c. C of IR v New Zealand Refining Co Ltd (1997) 18 NZTC 13, 187 (CA);
d. Chatham Islands Enterprise Trust v C of IR (1999) 19 NZTC 15,075 (CA); and
e. Rotorua Regional Airport Ltd v C of IR (2010) 24 NZTC 23,979

Required:

Identify and discuss the ‘guiding principles' for "consideration" for GST using the Goods and Services Tax Act (GSTA) 1985 AND the courts' decisions from the above cases. Your answer should also include justifications in the determination of "consideration" for GST purposes.

Word limit: 1500 words (not including references) 25 marks

2. Income Tax on Property/Land Transactions and Capital Gains Tax

The New Zealand government introduced taxing on the sales of residential property on 1st October 2015 (also known as the bright-line test). The test will require income tax to be paid on any gains from the sale of residential property that is bought and sold within two years, with limited exceptions.

Some authors have argued that this is a pseudo capital gains tax.

Required:

Do you think it is necessary for New Zealand to implement taxation on the sale of residential properties (bright-line text)? Why or why not? NB: You answer should also include the maxims of good taxation.

Word limit: 1500 words (not including references) 25 marks

Revert if you can do the same and deliver by 6th, August.

The other attachments contain all the details and taxation law in NZ along with the weekly notes etc.

Word - 3000 words

Attachment:- group work.rar

Reference no: EM131157565

Questions Cloud

Does your company have market power : Government regulators are concerned with market power. Does your company have market power? Or does your company operate in a competitive market? If so, provide a few examples

How would you recover the product lost in the evaporator : Estimate the feed flow rates of glycine and guaiacol that would be needed to produce 100 kg/day of the API.

How necessary is it to fine-tune your marketing plan : How is the marketing of services different than the marketing of a product? What are the challenges of marketing a service? How is marketing shoes different from marketing shoe repair?

Sketch a p&i diagram of the reactor and feed section : What pressure would you choose for operation of the fermenter, and how would you control it?

Analyse the fundamentals of tax determination : Analyse the fundamentals of tax determination for individuals and business organisations - Critically analyse and explain the various types of taxation such as fringe benefits tax, capital gains tax and goods and services tax.

Discuss the differences between each of the given methods : Discuss the differences between each of these methods. Please provide the different accounting treatments (i.e. journal entries) of the following transaction for both Cash Base Accounting vs. Accrual Base Accounting:

Estimate the power required by the pump : The ship must unload 1000 metric tons within 5 hours to avoid demurrage charges. Estimate the power required by the pump. Take the pump efficiency as 70%. Physical properties of toluene: density 874 kg/m3, viscosity 0.62 mNm-2

Should a mission statement also be a marketing tool : Name the six steps in the marketing research process as discussed in the Kotler text. Why is it important to include all of these steps in the research process?

Compute the first years depreciation using straight line : Compute the first years depreciation using the following methods:-Straight-line-Double-declining balance - Which method do you think is the most representative of accurate depreciation of the goal posts?

User Account

All Pages