(Solution) Taxation law of Australia Assignment
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Added on 2020-02-18
(Solution) Taxation law of Australia Assignment
Added on 2020-02-18
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Running head: TAXATION LAW OF AUSTRALIATaxation law of AustraliaName of the University:Name of the Student:Authors Note:
1TAXATION LAW OF AUSTRALIATable of ContentsQuestion 1: Providing relevant advice to client for the following items, which could betreated for tax purposes under Australian Tax Law...................................................................2Answer to i) Receiving flyer point from Webjet.......................................................................2Answer to ii) Received property damage payment from customer............................................2Answer to iii) Nightclub manager receiving holiday package from alcohol supplier...............3Answer to iv) Funds being returned to Canoe club members....................................................3Answer to v) Payment received by footballer from television company...................................4Answer to vi) Expenses related to building apprentices............................................................4Answer to vii) Short course expenses conducted to become Art Director................................5Answer to viii) Expenses conducted on makeup and dresses....................................................5Answer to ix) Expenses conducted from travelling to office from home..................................6Answer to x) Expenses conducted in travel between one employer to another.........................6Question 2: Manpreet’s Taxable income for the year 2016/17 financial year...........................7Reference and Bibliography:....................................................................................................10
2TAXATION LAW OF AUSTRALIAQuestion 1: Providing relevant advice to client for the following items, which could betreated for tax purposes under Australian Tax LawAnswer to i) Receiving flyer point from WebjetThe situation mainly defects that there is relevant benefits provided to a businessanalyst flying regularly from Webjet. Under the normal circumstances these overall benefitsthat are provided by airline companies are not considered under taxable income, as stated inTaxation Ruling of TR 1999/6. However, the Australian taxation ruling also states that thereis some criteria’s, which needs to be met before allowing the expense as tax exemption. Theoverall benefit that is provided by Webjet is not considered under taxable income or Fringebenefit tax, until and unless these factors are proved (Bird and Zolt 2014.). There is a relationbetween employer and employee when they could be considered as a family. In addition, ifthe overall reward points is provided to the employee in terms of his/her employmentagreement. Lastly, the flight points provided by Webjet are under a particular arrangement.However, evaluation of the scenario mainly states that there is no agreement between theemployee and Webjet or the employer and Webjet, which directly excludes the benefit fromtaxable income. Answer to ii) Received property damage payment from customerThe situation mainly states that relevant compensation is been received by thecompany from a customer for damages conducted on its Capital Asset. According to theAustralian taxation law, the overall damage payment that is conducted on capital assetscannot be considered under Taxable income.Furthermore there are certain criteria that needto be followed by an organisation for not including the damage payment of capital assets astheir capital income (Lang 2014). Firstly, the assets should be used by the organisation
3TAXATION LAW OF AUSTRALIAthoroughly, which directly reduces the overall taxable income. The second measure mainlystates that the Capital Asset is adequately listed in the annual report where adequatedepreciation is been conducted. This measure is relevantly important, as it allows theAustralian taxation authority to understand that the Capital Asset has been used by theorganisation for more than one fiscal year.Answer to iii) Nightclub manager receiving holiday package from alcohol supplierThe scenario mainly states that relevant holiday package is been provided to thenightclub manager by the supplier of alcohol. This relevant Arrangement mainly states thatthe benefit or gift provided by the alcohol supplier is relatively higher in value. According tothe Australian taxation authority, low budget gifts exempted from the taxable income,whereas High Budget gifts are directly included into the taxable income. This mainly helps inreducing the any kind of unethical measures that is conducted by employees and owners.Moreover, the scenario mainly states that holiday package has higher value, where the nightclub manager needs to add the benefit to its taxable income. in the Australian taxation officethe measure mainly states that any gift that could be considered as amount of cash paid to theindividual is considered under the taxable amount. Novikov, Ling and Kordzakhia (2014)stated that individual employees getting benefit from their employers are mainly consideredas fringe benefit tax which is paid by the employer. Answer to iv) Funds being returned to Canoe club membersThe situation mainly states that relevant fund is being returned to the Canoe ClubMembers, as excess money was being collected. This return of money from the Canoe Clubis mainly a refund and cannot be considered as an income of the members. As per theAustralian taxation law, any kind of expenses that are conducted on clubs for personalentertainment are not deductible in nature (Davis et al. 2015). Therefore, the overall return of
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