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Taxation Theory, Practice & Law: Assignment

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Added on  2020-12-10

Taxation Theory, Practice & Law: Assignment

   Added on 2020-12-10

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TAXATION THEORY,PRACTICE & LAW
Taxation Theory, Practice & Law: Assignment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Determine Net Capital Gain/Loss for year ended 30th June.......................................................1QUESTION 2 ..................................................................................................................................9Employer Provided Car to Employee.........................................................................................9Calculation of Fringe Benefit as Loan......................................................................................11FBT charged as goods sold to Jasmine at low cost ..................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
Taxation Theory, Practice & Law: Assignment_2
INTRODUCTIONFederal Government Levies and collects Taxes in Australia through Australian TaxationOffice. ATO manages all laws and regulations that are levied on the different sections of society.The Law which covers income tax in Australia is Income Tax Assessment Act 1936 followed byTax Assessments Act 1997. Goods and Service tax governed by Goods and Services Tax Act1989 are taxes that are levied on Sales of Goods and Services, collected by Federal Government.In this project, the client wants analysis of data given of calculation of taxable capital gain lossfor current year on various assets and also to provide GST' s provisions if applicable. In this casestudy, client needs calculation regarding Fringe Benefits that are provided to employees underFBT Act 1986. QUESTION 1Determine Net Capital Gain/Loss for year ended 30th JuneVarious asset provided by client where capital gain tax, is need to be calculatedunderIncome Tax Assessment Act 1997. All gains and loss regarding capital asset are levied onpurchase and sales of property (Wilkins, 2015). The law covers various methods to calculate taxby different basis of utilization of asset.(a) Vacant LandTreatment on sales of land depends upon that it is used as a capital asset or is kept forcommercial purpose. Mostly block of land are treated as capital asset so it is charged as CGT butif they are used as stock in real estate business then any income from that will be ordinaryincome and will be charged for taxes as business income (Capital Gains Tax. 2018.).Land acquired before 11:45 am on 21st September 1999 and is held for more than 12 months thenIndexation Method will be applied and if not then “Discount Method” will be used. To calculatecost base, we need to include all expenses which are related to acquisition of asset that may bebrokerage, stamp duty etc. (Chardon, 2016).The Contractual rights of asset are described by Section 104(35) of ITA act 1997.1.the timing of event will be when you enter into contract or acquiring rights arecreated for other persons.2.Disposing of asset will be deemed as event when owner transfers right to othersperson.1
Taxation Theory, Practice & Law: Assignment_3
Cost base Calculation on 3/06Purchase Price of Vacant land100000Add Statutory Rates And taxes20000Unindexed Cost Base 120000Calculation of Sale ProceedsSale proceeds from land320000Less Unindexed Cost Base120000Gain for next year2000002
Taxation Theory, Practice & Law: Assignment_4

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