Reference no: EM131212945 , Length: word count:2000
TAXATION LAW ASSIGNMENT
Question 1 - Two years ago Peta purchased a house in Kew. This house had two old tennis courts down the back which were in poor condition. She purchased the property for two reasons:
- so that she and her family could live in the house; and
- so that she could build three units on the tennis courts and sell them at a profit.
In the current tax year the tennis club next door offered to buy the old tennis courts, but only if Peta first restored them to good condition. Peta decided to accept the club's offer instead of going ahead with her plan to build and sell units.
Peta spent $100,000 on preparing the tennis courts for sale. This involved a great deal of work. Peta had to resurface the tennis courts and build new fences around them. She then sold the tennis courts in the current tax year to the tennis club for $600,000.
Ignoring capital gains tax, discuss whether the receipt of $600,000 is ordinary income under s 6-5.
Question 2 - Alan is an employee at ABC Pty Ltd (ABC). He has negotiated the following remuneration package with ABC:
- salary of $300,000;
- Payment of Alan's mobile phone bill ($220 per month, including GST). Alan is under a two-year contract whereby he is required to pay a fixed sum each month for unlimited usage of his phone. Alan uses the phone for work-related purposes only;
- Payment of Alan's children's school fees ($20,000 per year). The school fees are GST free.
ABC also provided Alan with the latest mobile phone handset, which cost $2,000 (including GST).
At the end of the year ABC hosted a dinner at a local Thai restaurant for all 20 employees and their partners. The total cost of the dinner was $6,600 including GST.
(a) Advise ABC of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2016. Assume that ABC would be entitled to input tax credits in relation to any GST-inclusive acquisitions.
(b) How would your answer to (a) differ if ABC only had 5 employees?
(c) How would your answer to (a) differ if clients of ABC also attended the end-of-year dinner?
|
Components of the national preparedness system
: Summarize the system components of the National Preparedness System (one paragraph per component should suffice)http://www.fema.gov/media-library-data/20130726-1855-25045-8110/national_preparedness_system_final.pdf
|
|
Prepare a report that summarizes the information researched
: Prepare a business report that summarizes the information researched on your two firms. The report should include the name and background information on each of the firms.
|
|
Emotionally incompetent behaviors
: Emotionally incompetent behaviors can destroy a team's ability to achieve a specific goal. From the following list of incompetent behaviors (Porter-O'Grady & Malloch, 2015), select one behavior, develop a fictitious example that demonstrates the s..
|
|
Difficult challenges for sales executives
: Sales forecasting is often viewed as one of the most difficult challenges for sales executives, marketing managers, and others responsible for making them. One of the reasons for this is that those responsible for making sales forecasts recognize..
|
|
Discuss whether the receipt is ordinary income
: HA3042 TAXATION LAW ASSIGNMENT. Two years ago Peta purchased a house in Kew. This house had two old tennis courts down the back which were in poor condition. Ignoring capital gains tax, discuss whether the receipt of $600,000 is ordinary income under..
|
|
What should be the role of training
: In 200-250 words, how has technology fostered new cost-effective virtual methods of training? In your view, how must training programs continue to evolve in order to do more with diminished financial resources?
|
|
Government not regulate regarding private security
: Explain the role the federal government has in regulating security. What additional areas would you like to see the government involved in? What areas should the government not regulate regarding private security? Apply the philosophies of Button ..
|
|
How to establish a cost and schedule performance measurement
: Discuss the importance of work packages to support the creation and use of the WBS. Examine how to establish a cost and schedule performance measurement baseline. Present examples of EVM and how it will help the PM understand project status.
|
|
Weighted-average unit contribution margin
: Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme. Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme. Fixed expenses are $1,800,000. Stephanie, Inc. sells its pro..
|