HA3042 Taxation Law Assignment: Fringe Benefits and Capital Gains

This assignment solution addresses key aspects of Australian taxation law, specifically focusing on fringe benefits tax (FBT) and capital gains tax (CGT). The first part of the solution analyzes FBT, comparing the statutory formula method and the operating cost method to calculate tax liability for a company providing a car to an employee. The analysis includes detailed calculations of car fringe benefits, incorporating costs such as fuel, repairs, and insurance, and considering employee contributions. The second part of the solution delves into CGT, examining ordinary income, statutory income, and the application of CGT to various asset scenarios, including real estate, artwork, a luxury yacht, and shares. Each scenario is analyzed to determine whether CGT applies, considering factors like the date of acquisition, sale price, and asset type. The solution provides a comprehensive understanding of how CGT is applied to different types of assets and investments, helping students understand complex tax concepts.