HI6028 Taxation Assignment: Analysis of GST and CGT Implications

This assignment solution addresses two key taxation issues: Goods and Services Tax (GST) and Capital Gains Tax (CGT). The first question examines the City Sky Co's entitlement to input tax credit, analyzing creditable acquisitions and taxable supplies under the GSTA. The solution calculates the GST payable on legal services, concluding the company is eligible for a $3000 input tax credit. The second question assesses Emma's capital gains tax consequences, calculating the cost base and cost proceeds for various transactions, including the sale of land, shares, and collectibles. The analysis determines Emma's CGT liability, considering capital gains and losses, providing a comprehensive overview of the tax implications of her transactions.