Write fbt consequences of the given transactions

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Reference no: EM132211382

Question: Jamie is a real estate agent working for ‘Houses R Us' real estate. As part of his employment contract, Jamie receives a base salary of $50,000 per annum plus 10% of the agency's commission on sold properties where he has had a direct connection with the sale. He is also provided with a car, a Toyota Kluger costing $48,000. He is not required to contribute to the running costs of the car which total $13,500 per year and is allowed to use the car outside of work hours and on weekends.

Jamie's salary package also includes a laptop which cost $2,300 and a mobile phone costing $1,200 per year. His employer also reimburses his annual professional subscription of $550 and provides him with an entertainment allowance of $2,000 per year.

Jamie was also lucky enough to achieve the highest sales for the previous six month period and was rewarded with a high tech home entertainment system worth $4,800.

‘Houses R Us' also offer their staff loans of up to $100,000 towards purchasing their own house at a rate of 4% per annum. Jamie is considering taking up this offer to purchase his first home.

Required: Advise Jamie and ‘Houses R Us' of the taxation and FBT consequences of these transactions. You are not required to calculate any FBT liability.

1. You should use the Introduction, Law, Application and Conclusion (ILAC) style of essay writing for this assignment

2. Do not re-state the question as part of your answer. This often gets repeated in the 'issue' section, however that is incorrect.

3. Use in-text referencing. Do not use footnotes.

4. Names of cases or statutes should be italicised, and followed by the jurisdiction not in italics, for example: Acts Interpretation Act 1901. Note the abbreviation for ‘Commonwealth' is ‘Cth' not ‘Cwlth'.

5. Do not start a new line simply because you are starting a new sentence.

6. Start each paragraph on a new line, and leave a clear line gap after the preceding paragraph. Don't make your paragraphs too long.

7. You must end your assignment with a bibliography that is divided into three separate parts, listing statutes, cases and books / articles / on-line Modules.

Rationale: This assessment task will assess the following learning outcomes:

• be able to identify and explain the rules of law relating to taxation law topics covered in the subject.

• be able demonstrate a capacity to engage in legal research.

• be able to use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution.

• be able to analyse legal rules so as to differentiate between possible outcomes to the legal issues arising from novel fact situations.

Reference no: EM132211382

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