taxation Assignment 2022

TAXATION

Contents
Introduction............................................................................................................... 2
Answer-1.................................................................................................................. 2
Answer-2.................................................................................................................. 3
Conclusion................................................................................................................ 5
References................................................................................................................ 7

Introduction
With increasing commercial changes, it is seen that taxation authority have been amending
and changing the rules and regulations with the passage of time. It is analysed where
numerous taxation policies and regulations that will need to remain complied by taxpayer
when determining the tax liability of the company. Therefore, the exemptions and the
deductions are the benefits as being given by the authority of taxation to tax payer as a relief
from the tax burden. At initial level, City Sky Company takes into consideration where there
is a computation of GST tax credits. After this, there is a calculation of taxable liabilities of
Emma that has income and assets (Braithwaite, and Reinhart, 2019).
Answer-1
City Sky company is a registered firm that is recognised under GST (Goods and Services
Tax) under Goods and services Act of Australia. Type of organisation of City Sky Co. is the
investment in developing properties under GST of Australia. The organisation has purchased
vacant land in South of Brisbane which City sky Co has been planning to create 15
apartments story building to sell those apartments. While purchasing the vacant land, the city
Sky has handled a legal service from local lawyer named Blackburn. The company has paid
lawyer where the fees of Blackburn is estimated “$33000” to provide legal services to clients,
Blackburn runs established trading organisation with a revenue of$300000 each year. To
develop the projects of 15 apartments created to resell the flats, which is the normal course of
action as it is the nature of business. City Sky co. has been paying fees to the lawyer, which is
the cost of product, those city Sky co sales (Burkhauser, Hahn, and Wilkins, 2015). The
organisation is entitled to take away the tax input ad fees paid by the organisation to the
lawyer. Blackburn has counted the lawyer`s fees as professional income as being earned by
lawyer by providing the legal services to organisation. The company has the authority to take