Finance Assignment: Tax, Partnerships, and Superannuation

This document provides solutions to a finance assignment. Question 1 analyzes the tax consequences for Oliver and his employer regarding a loan repayment and subsequent forgiveness, referencing relevant tax laws. Question 2 examines the partnership structure of David and Emma's investment properties, discussing whether they are considered partners and their tax return obligations under relevant legislation. Question 3 addresses the tax implications of Anna's superannuation contributions, considering her marginal tax rate and the employer's contributions to the superannuation fund. The document provides detailed answers, analyzing the tax consequences and relevant laws for each scenario, providing a comprehensive understanding of financial concepts.

Questions and answer

Answer 1:
Payments due in previous years by a previous company or manager, which were not paid or paid
in those years, include "unpaid debts" of payment. Subject to the provisions of the Income Law,
1961 (hereinafter referred to as the "law"), any responsibility which is not satisfied with the
salary paid or authorization given to a representative in the preceding year by or for benefit a
previous company or boss, if not. they are personally liable for any prior year, subject to an
annual assessment during the year provided under the "Salary" item.
Late payment debts that indicate with previous administrations could result in a higher appraisal
for employees because of the burden upon receipt. This is basically due to the logical extension
of the component service rhythms. Change in the annual assessment block involves a relative
change in the extent and extent of personal responsibility and overhead. This could lead to a
higher valuation event, which would not be necessary from the employees, because if they had
received the money in the years to which they relate, the additional costs would have fallen over
the years, instead, to gather in a year solitary as a portion of a single amount.
The provisions of Section 89 of the Act represent a discount in this particular situation, as they
allow you to charge this additional level of tax on employees who accept back payments.
Section 89 is a useful agreement within the meaning of Chapter VIII of the Revenue Act (the
law), which is designated by "Discounts and Facilitations". The goal of this section is to
moderate the problem due to the high level of service due to the ever expanding section levels.
The benefit derived from this is accessible to all citizens who receive compensation in advance
or financially because of their independence from being an administrative employee or a private
property representative.
Hence, Oliver is subject to pay tax on $6000 dollar as it is part of his income and any cash
inflow, profit or income is subject to taxation.
Answer 2:

To structure your business with the goal that your spouse is a partner, you must register a
partnership through your Secretary of State's office. It is possible to establish a limited liability
association by publishing the other important one as a toolkit. Shaping LLP will promise your
benefits in case of need. You can also model a company and achieve a similar product. You can
divide the ownership of the organization into equal parts so that your life partner has equal
ownership. Proper understanding is essential above all because there is unlimited individual
responsibility for each of the actors. Each coalition will be at risk of any shortage in the event of
a collapse of the business and recognition of deficient organizational resources to disburse the
association's loan leaders, regardless of whether the partners can pay. Each 'partner' is also
responsible towards the others for any obligations that the other participants assume in the
interest of the company, with or without the information of the other partners.
According to partnership act 1895; David and Emma are in a partnership as investors.
Yes according to LLP as discussed above and partnership taxation act section 40(b); a
partnership firm is subject to levied on tax up to 30% and no salaries and wages are allowed to
partners for deduction purposes.
Answer 3:
Superannuation fund are vehicles with a back-loading subsidy fund that helps people set aside
something for retirement. The large area of the supermarket is well controlled and in-depth.
The annual obligation for premium activities is applied at a rate of 15% on the salary available,
or a large part of the organization’s gross expense rate of 30%. There are also a number of
concessions and decisions relating to super assets. This means that the salary of most available
assets is much lower than the total or assessable salary. For example, the salary received from the
resources used to assist with annual sums paid to individuals is called the gross current salary
(ECPI) and is prohibited from the commission.
Affect on Anna: As Anna is already paying tax margin of 47% on her income; so any amount
which is sacrificed by her for the contribution under Superannuation Guarantee charge is not

subject to taxation. But contribution by employer in the form of $13,000 dollar is subject to tax
for 15%.
Affect on Medical Centre: Firm can only tax deduction for contribution of $13,000; not
$17,000 which is contributed by Anna.
The total tax levied on the contributions to Anna will be = 15% of $13,000 = $1,950