Taxation Theory, Practice & Law Assignment: GST and Capital Gains

This assignment solution addresses two key taxation scenarios. The first part analyzes the Goods and Services Tax (GST) implications for a property investment and development company, The City Sky Co., focusing on the tax treatment of legal services and the applicability of the margin scheme. It examines the GST registration requirements for a sole trader lawyer and the company's entitlement to input tax credits. The second part delves into capital gains tax (CGT) calculations for Ms. Emma, analyzing the tax implications of selling a block of land, shares in Rio-Tinto, a stamp collection, and a grand piano. It considers various costs associated with the land acquisition and sale, along with the application of relevant tax provisions, including the exclusion of assets acquired before a specific date. The assignment applies Australian tax law to determine the tax liabilities and benefits for each transaction, providing detailed calculations and explanations.