Tax Implication and Taxation Planning of the Company

Running Head: - Tax Implication on the company 0 | P a g e
TAX IMPLICATION ON
THE COMPANY
Module Number
0

Tax Implication on the company` 1 | P a g e
Table of Contents
Introduction................................................................................................................ 2
Answer to the given question-1...............................................................................2
Issue........................................................................................................................ 2
Rule......................................................................................................................... 2
Application.............................................................................................................. 3
Conclusion............................................................................................................... 4
Answer to the question no 2 –................................................................................. 5
Conclusion.................................................................................................................. 9
References............................................................................................................... 10
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Introduction
This report has revealed the tax implication and taxation planning made by the company
and individual to compute the total taxable liabilities. In the starting of this report, tax
implication and the total tax liability of the company has been computed. After that the different
aspects of the taxation rules and regulations to compute the tax to be paid by the assesse has been
made. This report has shown that in order to compute the proper tax liabilities and reducing the
tax burden of the individual, there is required to implement the proper tax planning. In the
starting, GST tax credit and tax implication has been given in context with the tax liabilities of
the City Sky Corporation limited.
Answer to the given question-1
Issue
Whether the City Sky Co of the input tax credit entitlements that they may be
entitled as per GST?
Rule
The organization considered in the tax assessment is City Sky Corporation limited. It is a private
corporation limited organization which is registered under the society and corporation act.
However, this company falls under the Goods and Service Tax computed under the Goods and
Service Act of Australia. The City and Sky Company manages the speculation made in the
property and furthermore incorporate structure properties which goes under Australian Goods
and Service Tax Act (Brabazon, 2019). The City Sky Corporation limited has obtained a vacant
land in the Southern piece of Brisbane where the organization is setting up to raise tall structure
with 15 lofts, so they can sell the its structure independently However, the Maurice Blackburn,
an area legal advisor was enlisted by City Sky Corporation limited to take help for his legitimate
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administrations for purchasing the vacant land (Evans, Minas, & Lim, 2015). Attorney Maurice
Blackburn was paid a charge of $33,000 for giving his administrations required for the
improvement and renovating the building accompanied with the total 15 apartments.
Furthermore, offering his lawful administrations to the clients, Maurice Blackburn likewise wins
income of $300,000 per annum from a perceived private concern. Maurice Blackburn is being
paid by City Sky Corporation limited for his administrations (Edmonds, 2015). His duty is to
build up the structure of 15 lofts with the goal that the organization can sell them, as the typical
idea of their industry and the sum paid for legitimate administrations to Maurice Blackburn can
be brought from the division of the merchandise sold by City Sky Corporation limited (Faccio &
Xu, 2015). The charge paid to the legal advisor by the organization is at risk for duty
contribution by City Sky Corporation limited. The expense is determined as the word related
profit picked up by legal advisor Maurice Blackburn consequently of the legitimate
administrations given by the legal counselor to City Sky Company. As the aggregate sum of
$33,000 is the division of the expense to the association, the City Sky Corporation limited can
profit the total duty commitment on the all-out expense (Braithwaite, 2017).
Application
As per the given laws and regulations under the Goods and Service Act, it is considered that any
organization or industry having the yearly salary of $75000 for the association or is offering any
administrations and a pay of $150000 which is the least skirt a firm or an organization requires
or the NGO or non-benefit organizations. In the given case, it has been found that they are
qualified for paying tax under the Goods and Service Act of Australia. Hence, an autonomous
exchange business and friends of a legal counselor will likewise be recorded under Goods and
Service Act (Faccio, & Xu, 2015). Subsequently, Maurice Blackburn, the legal counselor, is
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