This assignment solution for HI6028, Taxation Theory, Practice & Law, analyzes the tax implications for City Sky Co. regarding GST and capital gains tax (CGT). The first part examines whether the company can claim input tax credit on GST paid to a lawyer, considering GST registration thresholds and the margin scheme. The second part analyzes the tax treatment of four capital asset transactions for Emma, including the sale of land, shares, a stamp collection, and a piano. The analysis applies relevant Australian tax laws, including CGT discounts and exclusions, to determine the taxable gains or losses for each transaction. The solution provides detailed calculations and explanations, covering issues like deductible expenses, and the application of the 50% CGT discount for assets held over 12 months. The assignment concludes with a summary of the tax implications of each transaction.
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