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Report on Taxation Theory, Practice and Law

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Added on  2020-04-07

Report on Taxation Theory, Practice and Law

   Added on 2020-04-07

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TAXATION THEORY, PRACTISE & LAW1
Report on Taxation Theory, Practice and Law_1
Table of contentsFirst scenario..............................................................................................................................3Second scenario..........................................................................................................................3Third scenario.............................................................................................................................5Fourth scenario...........................................................................................................................6Fifth scenario..............................................................................................................................6Reference list..............................................................................................................................72
Report on Taxation Theory, Practice and Law_2
First scenarioEric has owned the following assets, from the last 12 months: an antique vase (for $2,000), an antique chair (for $3,000), a painting (for $9,000), a sound system for home (for $12,000) shares in some listed companies (for $5,000). Eric has sold the assets last week are as followsantique vase (for $3,000), antique chair (for $1,000), painting (for $1,000), sound system (for $11,000)Shares (for $20,000)The issue is that whether he will make profit or loss on the capital for the year Healey, S.(2015). As Eric has sold the assets within a year time, so these assets has been considered as the shortterm assets.Net capital loss can be calculated is mentioned below: The total capital gains for the __ The total capital losses ___ Any CGT discount Year (including those distributed (including any net capital and small businessCGT by a managed fund or trust) losses from previous year) concessionsEric has sold the assets within a year, hence these assets are considered as the short termassets (Lim, 2013). The calculation of profit or loss is shown below: Net value of the assets - ($2,000+$3,000+$9,000+$12,000+$5,000) = $31,000Selling price of the assets are as follows -($3,000+$1,000+$1,000+$11,000+$20,000)=$36,000Calculation of net gain: Selling price - net value of assets - ($36,000-$31,000) = $5,000.Therefore, from the above study it has been observed that Eric has made a gain of $5,000.Second scenarioBrian is one of the executive of bank. As the part of his salary structure, his company hasgiven him a three year loan of $1m at a special 1% rate of interest per annum which ispayable in monthly instalments. Brian got the loan on 1 April 2016. Out of the total loan3
Report on Taxation Theory, Practice and Law_3

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