logo

Tax assessment Act 1986 - Assignment

   

Added on  2020-05-16

9 Pages1574 Words58 Views
Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors Note

1TAXATION LAWTable of ContentsQuestion 1..................................................................................................................................2Issue........................................................................................................................................2Rule........................................................................................................................................2Application of relevant law....................................................................................................3Conclusion..............................................................................................................................5Question 2..................................................................................................................................6Answer 1................................................................................................................................6Answer 2................................................................................................................................6Answer 3................................................................................................................................7Answer 4................................................................................................................................7References..................................................................................................................................8

2TAXATION LAWQuestion 1IssueAdvising Shiny Pty Ltd and Charlie in relation to tax implications towards fringebenefits. RuleFringe benefits have been defined by Brownlee (2016) as an added advantage givenby the employer which comes along with the money wage and salary gained by theemployees as the compensation for their services. A few typical examples of a fringe benefitare a car provided to the employee or additional health care cost of the employee borne by theemployer. A fringe benefit tax results out of a fringe benefit. This tax is calculated separate toincome tax for a period of 1st April to 31st March. The provisions of the Fringe benefits Taxassessment Act 1986 provide rules to determine the Taxable value of fringe benefits. Any benefit which is additional to the basic salary of the employee provided by theemployer is to be considered as a fringe benefit as also discussed by the judge in the case ofJohn Holland Group Pty Ltd &Anor v. Commissioner of Taxation [2015] FCAFC 82.The FBTAA through sub-section 7(1) set out provisions towards a car fringe benefit.According to the section a car is considered as fringe benefit if it is given by the employerand is held by the employee for a private use purpose or if the purpose for which the car hasbeen given is a private use purpose. It is irrelevant whether the car is put to private use by theemployee or any person associated with them (Morgan Mortimer and Pinto 2013).The FBTAA through section 9 sets out provisions for calculating the taxable value offringe benefit of the car by a process which is called statutory formula method. Under thisprocess the car’s cost is required for the calculation. No consideration is provided under theprocess to the public or private use of the car by the employee or his associates.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Assignment on Taxation Law Australia
|10
|1780
|26

Benefits Tax Assessment Act 1986
|13
|2290
|68

Answer to question 1: Taxation Law Name of the Student Name of the University Authors
|12
|2450
|268

Taxation Law: Fringe Benefit Tax and Capital Gains Tax
|11
|2502
|439

The Fringe Benefit Tax Assessment Act 1986
|10
|1827
|42

Assignment on Taxation Law
|14
|3084
|39