logo

Taxation laws : Sample Assignment

   

Added on  2021-06-14

8 Pages2198 Words51 Views
 | 
 | 
 | 
TAXATION LAW
Taxation laws : Sample Assignment_1

ANSWER - 1Issue : Hilary is a well renouned and a popularly known lady from the sportsbackground who had gained immense popularity. She was a peak climber andwas very musch professional in her sport. This professionalism and popularitydrove her to earn money from different soucrces and from her sport. She gainedimmense fan followers who would like to know everything about her and hersuccess. Thus she was offered an amount of $10,000 by the Daily terrornewspaper who wanted to publish her life story for her fans and general public.Eventually she was required to assign all her title, rights and interest in thecopyright to the Daily terror newspaper. Besides, she was interested to havesnaps of her sport which she managed to put on sale for which she received$2,000 and she also earned $5,000 by selling manuscripts to the MitchellLibrary.Rule : As described in section 6 of ITAA, 1936, wage from an individual effortis characterized as ‘salary comprising of profit, pay rates, commission,compensation or rewards in connection to any adminstrations rendered. Eachone of this pointers would be deemed to be treated as a pay of an individual asper the Australian Income Tax Act [ CITATION Com151 \l 1033 ]Analysis : According to the given scenario the pay received from the dailyterror newspaper cannot be treated as an individual pay while the other twopayments received by Hilary shall be considered as an individual pay as she isregularly engaged in such work.Conclusion : Thus with a view to above scenario and rules it is concluded thatthe two payments of $2000 and $5000 respectively are taxable under theindividual pay and the payment of $10000 is to be treated seperately. Hilary was a peak climber lady and not an author or a story teller. In case shewas engaged in full time job of offering articles on her life story for her living,then the amount earned would have been considered as an individual wage.
Taxation laws : Sample Assignment_2

ANSWER - 2Issue : Fringe benefit tax is the tax applied by the Australian Taxation systemlevied on the non-monetary benefits provided by the employer to his employeesin the course of employment. This tax is levied on the employer irrespective ofthe fact that the employee is getting the benefit directly or indirectly. Under thiscontext the employee includes all employees whether former or current butexcludes casual and contractual persons working for the enterprise. In the givenissue, Eric has provided a car to his employee for use for a period of 183 daysduring a year which he had purchased at an amount of $50,000. The distancecovered by the employee during the said period is 16000km and the employeehad contributed $1000 to his employer, Eric towards the running cost of the caralong with the relevant documents.Rule : Fringe benefit tax is levied on the employer in case the employerprovides the employee with a car for the purpose of the employee’s private use.The tax is not levied if the car is provided for work purpose. Thus, if the carprovided is used for the dual purpose, then the tax shall be levied onproportionate basis on the employer. The taxable value of the fringe benefit taxcan be calculated using two methods namely Statutory formula method andoperating cost method. Statutory Formula prescribes that the base value of thecar shall be reduced by one third of its value if the same is being leased orowned for four years or more. Further, a falt rate of twenty percent is appliedirrespective of the diatance travelled for a single car. The contribution receivedfrom the employee shall be deducted while computing the taxable value understatutory method. However, we are required to calculate the fring benefit taxusing the statutory formula method and the same is being calculated hereunder [CITATION Aus152 \l 1033 ]Analysis : Total distance travelled is 16000km.The base value of the car shall be $50000 since four yaers has not been elaspedfrom the FBT period to get the one-third reduction.The taxable value using the statutory method [{(50000-1000)*20%}*183/365]= $4,913.4
Taxation laws : Sample Assignment_3

End of preview

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

Related Documents
Taxation of Income from Various Sources under Australian Income Tax Act
|4
|2305
|126

(Solution) Assignment -Taxation Law
|8
|1802
|193

Australian Tax Law Analysis: Income, Fringe Benefits, and Capital Gains
|14
|2514
|392

Taxation Law for Property Owners
|6
|1366
|295

Taxation law - Assignment
|9
|2602
|349

HA3042 Taxation Law Assignment (Doc)
|9
|2601
|25