TAXATION LAW: Analysis of Fringe Benefits Tax and Capital Gains

This document presents a comprehensive solution to a Taxation Law assignment, focusing on two key areas: Fringe Benefits Tax (FBT) and Capital Gains Tax (CGT). The first part of the assignment delves into FBT, specifically concerning car fringe benefits. It analyzes the application of both the statutory formula method and the operating cost method for calculating FBT liability, considering factors such as the base value of the car, employee contributions, depreciation, and imputed interest. The second part of the assignment addresses capital gains, examining the capital gain consequences of selling assets. It explores the concept of capital gains, capital gain assets, and CGT event A1, as well as the calculation of capital gains and losses, including the determination of cost base, capital proceeds, and the application of the 50% discount. The assignment covers scenarios involving the sale of a house, a painting, a luxury yacht, and shares, providing detailed calculations and explanations of relevant tax regulations and case law.