Tax consequences of transaction

Assignment Help Taxation

Reference no: EM13174194

Question

Determine whether the following benefits are fringe benefits or exempt fringe benefits and, where applicable, the relevant category of fringe benefit. Provide reasons for your answer:

a) Kerry is an employee of the university. She is provided with 10 gift vouchers worth $50 each for use at the local supermarket as a Christmas gift. Advise Kerry and the University of the Tax Consequences of this transaction.

b) Sorella borrowed $10,000 from her employer on 4 September 2011 as her home was damaged in a freak storm. The loan was provided at no interest. On 15 January 2012, her employer informed Sorella that she was only required to repay half the loan. Advise Sorella and her employer of the Tax Consequences of this transaction.

c) Penny is employed as a secretary by a law firm. As part of her remuneration package, the firm agrees to provide her with legal services in relation to her divorce at a 60% discount to its normal rates. The firm also purchases a plasma TV set for $5,500 (inclusive of GST), which it gives to Penny. Explain how the taxable value of these fringe benefits will be calculated.

Reference no: EM13174194

Questions Cloud

Calculate the density of the metal : A block of metal has a width of 3.2 cm, a length of 17.1 cm, and a height of 2.7 cm. Its mass is 1.5 kg. Calculate the density of the metal. Express in grams per cubic centimeter using two significant figures.

What wavelength of light would you report : What wavelength of light would you report in units of nm, if the light had a wavelength of 7.60 x 10-10 m?

How many grams of methylamine must be combusted : how many grams of methylamine must be combusted to raise the temperature of 431 g of water from 11.0 degrees Ce to 41.0 degrees C?

Calculate the mass of nitrogen dissolved at room temperature : Calculate the mass of nitrogen dissolved at room temperature in an 78.0 L home aquarium. Assume a total pressure of 1.0 atm and a mole fraction for nitrogen of 0.78.

Tax consequences of transaction : Kerry is an employee of the university. She is provided with 10 gift vouchers worth $50 each for use at the local supermarket as a Christmas gift. Advise Kerry and the University of the Tax Consequences of this transaction.

What is the wavelength of an electron traveling : What is the wavelength of an electron traveling with a velocity of 7.0 times 10 to the 3rd power?

How many moles of alcl3 can be produced : How many moles of AlCl3 can be produced by letting 918 grams of HCl react?

Identify situations that might lead to unethical practices : Write a 350- to 700-word article analysis in which you identify situations that might lead to unethical practices and behavior in accounting.

Define what is the ratio of the rate constants : What is the ratio of the rate constants for this reaction when the temperature is decreased from °C to °C?

User Account

All Pages