Capital Gains and Fringe Benefit Tax: A Study on Tax Liabilities

0Taxation
Taxation
Name of the Student:
Authors Note:

1Taxation
Executive Summary:
The current summary is based on defining the capital gains on the consequences of the tax
liabilities as well as the fringe benefit tax. This study is comprised of the numerous
transactions, which the taxpayer reported. The first segment includes the queries about the
significances of the taxpayer to choose the income tax which is experienced during the
specific year. The next part holds the research of the significances of the fringe tax benefit
according to the fringe benefit tax act 1986. The discussion is comprised of the car fringe
benefit, loan fringe benefit and the fringe benefit of the expense reimbursement to value the
consequences of tax for the taxpayer.

2Taxation
Table of Contents
Answer to question no. 1:...........................................................................................................3
Sale of vacant block of land:..................................................................................................3
Antique Bed:..........................................................................................................................4
Painting:.................................................................................................................................5
Answer to Question no. 2:..........................................................................................................7
Answer to A:..............................................................................................................................7
Issues:.....................................................................................................................................7
Rule:.......................................................................................................................................8
Conclusion:............................................................................................................................9
Answer to B:............................................................................................................................10
References................................................................................................................................11

3Taxation
Answer to question no. 1:
According to “section 102-20 of the ITAA 1997” the taxpayer because of the CGT
event makes the capital loss or the gains. According to “section 104-10 (1) of the ITAA
1997”the A1 CGT event occurs at the time of the removal of asset. The “Sara Lee
Household v FC of T (2000)” court held that when a taxpayer arrives an agreement that
period becomes suitable for the CGT event. CGT appears as a combined income tax regime
for the taxpayer. It is not a detached tax (Dixon and Nassios, 2016).
As per “section 102-5, ITAA 1997” it is justified by the taxpayer that net capital gains that is
earned at the income year. The taxpayer contrary to the capital gains confines the capital loss.
The capital losses are not measured as the deductible amount while the net capital losses are
to be passed onward. The assets that are received on or after 20th September 1985 are
assumed as the capital gains. According to “Section 104-20(1)” it is stated that the C1 in the
CGT event occurs at the time when the CGT asset is lost or damaged (O'faircheallaigh,
2017).
Sale of vacant block of land:
An empty land is acquired by an individual either for the personal use or for
investment purpose, which is generally accepted as the capital asset. But at the time of selling
the land it is exposed to capital gains tax. In the present case, the taxpayer provides
information that for selling the empty land a bond is invented. The land was originally
acquired for an amount of $100,000 and happened $20,000 in the direction of local council,
land and water tax at the time of ownership (Richardson, et al 2015).
As per the Australian Taxation Office the tax payer who has regarded the empty land
as the capital asset which is exposed to capital gains tax like many other assets. The taxpayer
is required to preserve the accounts of the time and cost of gaining the land by the Australian