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Taxation theory, practice and law | Assignment Solution

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Added on  2021-01-02

Taxation theory, practice and law | Assignment Solution

   Added on 2021-01-02

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TAXATION THEORY,PRACTICE AND LAW
Taxation theory, practice and law | Assignment Solution_1
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Capital gain tax incidence for the year ended 30 June on sale of different assets..................1Treatment of capital losses and gains..........................................................................................62. Calculation of Fringe Benefit Tax (FBT) liability of Rapid-Heat Pty Ltd for the year ending31 March 2018............................................................................................................................6CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
Taxation theory, practice and law | Assignment Solution_2
Taxation theory, practice and law | Assignment Solution_3
INTRODUCTIONThis report comprises of Australian taxation system, Practice and law. As Australiantaxation system is very vast, so according to given questions only taxation of capital gain andfringe benefit taxes (FBT) will be covered (Taylor and Richardson, 2012). Report will beprepared taking into consideration that client is a tax consultant, antique collector and investor inMayfield, New South Wales. Capital gain taxes are levied on variation in the value of asset at thetime of buying and while selling. Fringe benefit taxes are levied on employers on renderingcertain extra benefits to employees other than salary payment. In first question provisions ofcapital gain/loss related to block of vacant land, antique bed, painting, shares and violin will becovered with FBT liability on providing car and loan to employee.MAIN BODY1. Capital gain tax incidence for the year ended 30 June on sale of different assets(a) Block of vacant land: Capital gain levies on sale of assets, property, or shares. When assets are sold, one cansuffer from capital loss due to decrease in value of asset at the time of disposal or can makecapital gain. Tax is imposed on capital gains/losses refer to as capital gains tax (CGT) and this ismandatory to mention in income tax return not as a separate head but in the heading of incometax. Capital loss can be adjusted against capital gain. CGT in Australia applies on asset at anyplace in the whole world including vacant land (Saad, 2014). As per section 104(35) of ITA act 1997, some contractual rights provide the calculationmethod which is illustrated as belowCost base Calculation on 3/06Acquisition Cost of Vacant land100000Add Statutory Rates And taxes20000UN-indexed Cost Base 120000Calculation of Sale ProceedsParticularsAmountSale income from land320000Less Index Cost of acquisition1200001
Taxation theory, practice and law | Assignment Solution_4

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