Reference no: EM132764239
HI6028 Taxation Theory, Practice & Law - Holmes Institute
Case Studies of Specific Deductions and Tax Liability
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
Alex Limited (a GST registered firm) is planning to have a Christmas party for staff. This party is going to be on the last business day of the year, which is Friday, and the location is planned to be in the restaurant on the ground floor of the office. Staff are allowed to bring only one of their associates and food and drinks are served for free. The number of staff attending this party is going to be 20 people and a total of 40 individuals will be served (including the associates).
The estimated cost of the party is $7,480 for the current tax year 2019-2020.
Explain in detail using relevant tax laws and cases whether this cost of $7,480 is deductible for Alex Limited.
Kindly use the four sections of:
1. Facts of the scenario
2. Relevant laws and cases
3. Application of laws and cases
4. Conclusion
QUESTION 2
Calculate Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the tax payer (Judy) with information below:
• Judy is a resident married, with no children, tax payer of Australia for the tax year 2019-2020
• Her Taxable Salary earned is $100,000 while her husband's taxable income for the same year is $150,000 (Including tax withheld) both having no private health insurance.
• Judy has a student loan outstanding for her previous studies at University Technology Sydney of $80,000.
• Judy's and her husband's employers pay superannuation guarantee charge of 9.5% on top of their salary to their nominated funds.
• Judy earned a passive income of $20,000 from the investments in shares in the same tax year.
Attachment:- Case Studies of Specific Deductions and Tax Liability.rar
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