Taxation Law Assignment: Payroll, Superannuation, and Business Income

This Taxation Law assignment provides a comprehensive analysis of various tax-related concepts. It begins with the computation of a payroll schedule and the calculation of an employer's Superannuation Guarantee obligations. The assignment then delves into the definition of 'business' under the ITAA 1997, determining the taxability of different income sources, including training payments, prize winnings, and receipts from trade-in assets. Additionally, it examines permissible deductions, referencing relevant case law. The assignment also covers the conditions necessary to meet the requirements of GST, and presents an example of GST calculations and reporting options. Finally, it presents a summary of GST and PAYG calculations.

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Answer to question A:................................................................................................................2
Answer to question B:................................................................................................................2
Answer to question C:................................................................................................................3
Answer to question D:................................................................................................................4
Answer to question E:................................................................................................................4
References:.................................................................................................................................6

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Answer to question A:
Computation of Payroll Schedule:
Employee Name Weekly Wages / Salary Weekly PayG Quarterly Wages/Salary Quarterly PayG
Kris 120 25 1560 325
Sam 220 49 2860 637
Sarah 4000 1528 52000 19864
Lauren 1440 458 18720 5954
Marty 5600 2280 72800 29640
Paul 2200 755 28600 9815
Employee Name Kris Sam
Week 1 120 220
Week 2 105 220
Week 3 150 330
Week 4 180 330
Week 5 0 220
Week 6 0 220
Week 7 75 330
Week 8 180 330
Week 9 150 220
Week 10 180 220
Week 11 120 330
Week 12 120 220
Week 13 120 0
Total Wages 1500 3190
Payroll Information
Answer to question B:
Calculation of employer’s statutory Superannuation Guarantee obligations:
Employee Name Super Fund Name Ordinary time earnings SG rate SG Contributions
Kris State Super Retirement Fund 1500 9.50% 142.5
Sam State Super Retirement Fund 3190 9.50% 303.05
Sarah State Super Retirement Fund 4000 9.50% 380
Lauren State Super Retirement Fund 1440 9.50% 136.8
Marty State Super Retirement Fund 5600 9.50% 532
Paul State Super Retirement Fund 2200 9.50% 209
1703.35Toal Employers Contributions
Superannuation Guarantee Obligations

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Answer to question C:
Item Value Supply Type Reference/Authority GST Input tax Credit ($)
Assesssable Receipts 11000 1000
Training Fees 82698
Taxable Sales (Supply
made in ordinary business
course) Section 9-5 & Section 9-10 7518
Share of prize money from customers horses 55000
Taxable Sales (Supply
made in ordinary business
course) Section 9-5 & Section 9-10 5000
Prize money from Bronny horses 16500
Taxable Sales (Supply
made in ordinary business
course) Section 9-5 & Section 9-10 1500
Trophy from Brisbane Cup 1200
Taxable Sales (Supply
made in ordinary business
course) Section 9-5 & Section 9-10 109.09
Trade in tractor 1900
Taxable Sales (Supply
made in ordinary business
course) Section 9-5 & Section 9-10 172.73
Total Receipts 157298 14299.82
Expenses Eligible as Deductions
Horse Feed 8800 Input Tax Sales Section 9-5 800
Veterinary Fees 7700 Input Tax Sales Section 9-5 700
Ferrier 5500 Input Tax Sales (No GST Included)
Accomodation for Staff 2475 Input Tax Sales Section 9-5 225
Airfares for staff 5346 Input Tax Sales Section 9-5 486
Bookkeeping services 2640 Input Tax Sales Section 9-5 240
First Aid courses for staff members 990 Input Tax Sales Section 9-5 90
Cost of Goods Sold 4500 Imported Goods Section 9-5 409
Freight 250 Imported Goods Section 9-5 23
Business loan 750 Input Tax Sales
Total Allowable Deductions 38951 2972.818182
Net Income from business 118347
Total GST Payable 11327.00
Business as defined under “section 995-1 of the ITAA 1997” refers to the carrying of
trade for the purpose of making profit but does not include employment in capacity of
employee (Grange et al. 2014). The receipts that is reported from the training payments by
Brian during the year 2018 is considered taxable under “section 6-5 of the ITAA 1997”.
Brian also reports share of prize winnings from customers therefore the same is included as
business receipts under “section 6-5 of the ITAA 1997” for assessment purpose (Jover-
Ledesma 2015). Later, receipts from the trade-in-tractor which was previously used on
property is held as income under “section 6-5 of the ITAA 1997” since the receipt was
derived during the ordinary course of business activities.
As defined under “section 8-1, ITA Act 1997” expenses incurred in generating
assessable income are held as permissible deductions (Taylor 2018). Referring to “Ronpibon

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Nil NL v FCT (1949)” the expenses on horse feed, veterinary fees are relevant business
expenses which has been allowed for deduction under “section 8-1, ITA Act 1997”.
Answer to question D:
Conditions necessary to meet the requirements of GST is give below;
a. The taxpayer has the sole intention of either using the purchase partially or entirely
for the business purpose (Woellner 2018).
b. The price of purchase is inclusive of GST.
c. An invoice from the supply is received by the taxpayer.
Evident in the current case of Brian, acquisitions namely the veterinary fees, horse
feed, tractor, saddles and leather are treated as creditable acquisition.
Answer to question E:
OPTION 1: Calculate GST & report quarterly SUMMARY
1A GST on Sales $14,299-
G1 Total Sales $1,57,298- 1C WET $-
Does G1 include GST Yes 1E LCT $-
G2 Export Sales $- 4 PAYG Withheld $66,235-
G3 Other GST-Free Sales $- 5A PAYG income tax instalment $16,790-
G10 Capital Purchases $- 6A FBT instalment $-
G11 Non-capital Purchases $- 7C FTC over claim $-
8A $-
PAYG tax withheld
1B GST on purchases $2973-
W1 Total Salary & Wages $1,76,540- 1D WET refundable $-
W2 Amount Withheld $- 1F LCT refundable $-
W4 No ABN $- 5B PAYG instalment credit $-
W3 Other amount $- 6B FBT credit $-
W5 total amounts withheld $- 7D FTC credit $-
8B $-
OPTION 1: Pay a PAYG instalment amount quarterly
PAYMENT OR REFUND
T7 $66,235-
Is 8A more than 8B? YES
FBT INSTALMENT

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Your payment amount $11,326-
F1 $-
F2 Est FBT for year $2,500-
F3 Varied amount payable $-
F4 Variation Code

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References:
Grange, Janet, Geralyn A Jover-Ledesma, and Gary L Maydew. 2014 principles of business
taxation, n.d.
Jover-Ledesma, Geralyn. Principles of business taxation 2015: Cch Incorporated, 2014.
Taylor, C. J 2018. Understanding taxation law.
Woellner, R. H 2018. Australian taxation law.