Computation of Net Capital Gain/Loss

This article explains the process of determining net capital gain/loss for individuals, specifically focusing on the case of Maurice in the tax year 2017-18. It discusses the different assets involved, such as home, shares, furniture, and vacant land, and explains the reasons for their treatment as exempt or taxable. The article also mentions the carry forward of capital losses and provides a total loss carry forward amount. The information is relevant to individuals in Australia who need to understand the computation of net capital gain/loss for tax purposes.

QUESTION 5:
The Computation part of net capital gain/loss has been described here in below:
Determination of Net Gain/ Loss
Maurice- Individual
Tax Year 2017-18
Sl
.
N
o Particulars Amount Reason
1 Home - Sale Nil
The same will be allowed as exemption under
residential accommodation as the same was never
used for the business purpose.
2
Disposal of Shares in Full
Pty Limited Nil
The shares were acquired before the date 20 the
September ,1985, before the date of introduction of
Capital Gain Tax law in the country Australia. So, on the
disposal of share the capital gain tax will not be levied
in full pity limited.
3 Furniture-Sale -4500
The same assets i.e. furniture has been assumed that it
is not a depreciating asset
4 Vacant Land- Sale -10000
The sale of Vacant land is taxable under the head
capital gain.
5 Net Capital Loss -14500
6
Carry forward capital
loss -17500
The said loss is assumed to be carried forward in
respective years.
7 Total loss carry forward -32000
(Commonwealth Of Australia, 2019)
By taking the difference between the purchase price and selling price the loss has been computed.
QUESTION 6:
Labor pledges tax breaks for small business and
crackdown on multinationals at campaign launch
The leader Bill shorten commits a break in tax for small business that hire youths, young and older
workers in a major drive. This is a way to boost the employment of those people who are
unemployed for a longer period. He also promised to end up the tax avoidance done by
multinational companies by refusing deductions to those organizations that send royalties to tax
havens overseas. The organization having business with an annual turnover of less than $10 million

and who hire new employee who are generally under 25 or above the age 55 group, such
organization would be able to claim a 30-tax deduction for up to five new workers salaries during the
first year of employment restricted to $50,000 per company. The new workers who are employees in
the organization would need to have been unemployed for a period of three months or longer. (The
Australian Financial Review, 2019)
Uber Australia grosses $785m, pays $8.5m tax
Uber one of the largest multinational company all over the world ,has made a gross profit of $785
million connecting Australians people to rides and restaurants meals in the year 2018.This huge
profit of Uber from Australia just wiped out by paying a service payment to its US parent and it paid
almost $8.5 million in company tax. (The Australian Financial Review, 2019)
Uber Australia Holdings which is a combination of four entities and supply the local ride and eats
meal services made a after tax loss worth $13.2 million despite all the agreement having with all its
drivers and restaurant partners of $ 935 million.
The company has shown a service fee of $691 which is almost unexplained in the books of account
of the company, it is charged just to reduce the taxable income of the entity. (Uber, 2019)
QUESTION 7:
The role the tax advisor has in ensuring their client’s compliance with all relevant taxation laws are
detailed here in below:
The code sets out the main five principles categories:
Honesty and integrity: The tax advisor should act honestly and with integrity and with best interest
to the client. All the taxation rules and laws should be complied with and should be informed to the
client. (Commonwealth of Australia, 2019)
Independence: The tax advisor should act independently ,in case any situation arises with relation to
any conflict the tax advisor should be ins much position to handle such situation independently in
the capacity of tax consultant advisor or BAS agent. (Commonwealth of Australia, 2019)
Confidentiality: All the information of the client should be kept confidential unless required to be
disclosed due to some legal issues. It is the duty of the tax advisor to keep all the matters secretly.
(Commonwealth of Australia, 2019)
Competence: The tax advisor must be competent enough to provide such service like the
consultants must be having relevant knowledge and skills regarding the taxation law service which
he is providing. The tax agent must have proper knowledge about the things he is handling on behalf
of client. All reasonable measures and steps to be taken to ensure that taxation rules and bye laws
are applied correctly and properly in relation to the services provide to the client. (Commonwealth
Of Australia, 2019)

Others: The tax agent must not knowingly block the proper management of the taxation laws. The
client should be well informed of the rights and duties under the taxation rules and laws that are
directly related to the tax service. The BAS agent should properly maintain the professional
indemnity insurance that the Board directs to maintain. All the request and directions from the
Board must be properly addressed on a timely basis in a reasonable and proper manner.
References
Commonwealth of Australia. (2019, April 27). CGT assets and exemptions. Retrieved from
www.ato.gov.au: https://www.ato.gov.au/general/capital-gains-tax/cgt-assets-and-
exemptions/
Commonwealth Of Australia. (2019, MAy 5). CGT assets and exemptions. Retrieved from
www.ato.gov.au: https://www.ato.gov.au/general/capital-gains-tax/cgt-assets-and-
exemptions/
Commonwealth of Australia. (2019, May 5). Code of Professional Conduct (Code). Retrieved from
www.tpb.gov.au: https://www.tpb.gov.au/comply-code-professional-conduct-tax-agents
Commonwealth Of Australia. (2019, May 5). TPB Information Sheet TPB(I) 34/2018 Code of
Professional Conduct – complying with taxation laws in the conduct of your personal affairs.
Retrieved from www.tpb.gov.au: https://www.tpb.gov.au/tpbi-342018-code-professional-
conduct-complying-taxation-laws-conduct-your-personal-af
The Australian Financial Review. (2019, May 5). Labor promises tax breaks for hiring older, younger
workers. Retrieved from www.afr.com: https://www.afr.com/news/politics/national/labor-
promises-tax-breaks-for-hiring-older-y
The Australian Financial Review. (2019, MAy 5). Uber Australia grosses $785m, pays $8.5m tax.
Retrieved from www.afr.com:
https://www.afr.com/technology/technology-companies/uber-australia-makes-785m-p
Uber. (2019, MAy 5). Retrieved from uberpeople.net: https://uberpeople.net/threads/ubers-2018-
figures.325169/