Assignment On Taxation | Australian Taxation Law LAWS20060

Added on -2020-02-19

| LAWS20060| 11 pages| 2337 words| 34 views

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Running head: TAXATIONTaxationName of the studentName of the universityAuthor note
1TAXATIONTable of ContentsAnswer to question 1..................................................................................................................2Answer to question – i............................................................................................................2Answer to question – ii..........................................................................................................2Answer to question – iii.........................................................................................................3Answer to question – iv..........................................................................................................3Answer to question – v...........................................................................................................4Answer to question – vi..........................................................................................................4Answer to question – vii........................................................................................................5Answer to question – viii.......................................................................................................5Answer to question – ix..........................................................................................................6Answer to question – x...........................................................................................................6Answer to question 2..................................................................................................................7Manpreet’s assessable income computation..........................................................................9Reference..................................................................................................................................10
2TAXATIONAnswer to question 1Answer to question – iAs per the TR 1999/6 taxation ruling if any points or rewards received by any regularfliers from the airline organization, the amount will be included under the assessable incomeof the receiver. Further, the TR 1999/6 taxation ruling deals with the points or rewardsreceived from the flight that is offered to the loyal customers. However, the rewards will bedealt as fringe benefit tax if the below mentioned criteria are fulfilled –The rewards or points offered to the employee in consideration with the specificarrangementThe reward or point is offered to the employee owing to his job with the company or afamily relationship is there between the employee and the employer1If the individual received the reward for offering the service as there is an entitlementfor the flight rewards, the rewards will be dealt in as the business expense of the employer. Itis evident from the given circumstances that points or rewards received by the frequent flierof the Webjet from the large business firm in consideration for their work shall not be taxedunder regular taxable income and it shall not be included even under the fringe benefit tax. Answer to question – iiWhere any person receives any reimbursement due to the damage of his capital assetthat he provided to the customers as part of provision of services, the amount of1Karin Simon, Sara McDonald, Accident Investigation - Databases - Library Guides At Cquniversity (2017)Libguides.library.cqu.edu.au http://libguides.library.cqu.edu.au/content.php?pid=166733&sid=2668174
3TAXATIONreimbursement shall not be assessed as income under the income tax of the person. However,to be qualified to get deduction, the below mentioned conditions must be fulfilled –The asset offered under the provision of service must be of capital nature and the assetmust be used for the purpose of business solely2The amount of reimbursement received from the customer shall be used exclusivelyfor restructuring the part of the capital asset that is damaged.The capital asset must be depreciable asset and the proof of budgeted depreciationmust be there in the books of account for the asset.Taking into consideration the above mentioned conditions, the amount received asreimbursement with regard to damage of the asset while it was used under the provision ofservice shall not be included as income for the purpose of assessing the taxable income.However, the above mentioned conditions must be complied with for getting the deductions.Answer to question – iiiAny amount be it in cash or kind, received as the gift are not qualified as thedeductible income or is not included under the exempted income rather, it is included underthe assessable income as per the taxation ruling of Australian Tax Office or ATO. The smallgifts are not taken into consideration in the period while the person’s tax is assessed. On thecontrary, the bigger amounts of the gifts that are convertible into monetary form and the giftsthat are received in the form of kind, the total measurable amount with regard to the gift areassessed as the assessable income as per the income tax ruling. In the given circumstances,the manager of the night club was offered the holiday package to overseas by the alcohol2The Tax Institute (2017) Taxinstitute.com.au https://www.taxinstitute.com.au/

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