Tax Computation and Analysis of Capital Gains and Fringe Benefit Tax

This report provides a detailed analysis of tax computations, focusing on fringe benefit tax (FBT) and capital gains tax (CGT) in the context of Australian tax law. The first part of the report computes FBT for Spiceco Pty Limited, considering a car fringe benefit provided to an employee, using both the statutory and operating cost methods as per the Fringe Benefit Tax Assessment Act, 1986. The analysis includes calculating the taxable value of the benefit, considering factors such as the car's base value, operating costs, employee contributions, and business versus personal use. The second part of the report computes CGT for Daniel Ray, who is planning for retirement, analyzing the tax implications of disposing of various assets. The transactions include the sale of a residential property, an artistic painting, a yacht, and shares. The report determines whether CGT events are triggered, calculates capital gains or losses, and applies relevant discounts and exemptions, such as the main residence exemption and the 50% CGT discount for assets held for over 12 months. The analysis includes references to relevant sections of the Income Tax Assessment Act and provides recommendations for minimizing tax liabilities.