This document provides a comprehensive solution to a Taxation Law assignment, addressing two key areas: Fringe Benefit Tax (FBT) and Capital Gains Tax (CGT). The FBT section analyzes the implications for Spiceco extending a car to Lucinda, calculating the FBT liability using both the statutory formula method and the operating cost method, incorporating relevant rates and formulas from the FBTAA 1986. The CGT section examines the CGT consequences of asset sales, including a house, a painting, a yacht, and shares. It details the calculation of CGT gains and losses, considering cost bases, capital proceeds, and relevant exemptions like the main residence exemption. The analysis considers CGT events, the timing of events, and the application of discount rules, providing a thorough understanding of the tax implications for each asset type. The solution references relevant sections of the ITAA 97 and provides detailed calculations to support the conclusions.
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