Unit Identify/Code Tax Legislation/BACC3004
Assessment Kind Assignment
Assessment Quantity 2
Assessment Identify Assignment
Unit Studying Outcomes Assessed Studying outcomes Graduate attributes
1. Describe the taxation framework in Australia and establish the ideas and ideas that underpin Australian Tax Legislation. Communication: The flexibility to speak successfully, each orally and in writing, with a various vary of audiences
Analysis: The flexibility to conduct thorough, correct and focused analysis
2. Clarify how the principle tax legal guidelines and laws in Australia have been utilized and establish the physique of case regulation that informs present interpretations of the taxation regime. Analysis: The flexibility to conduct thorough, correct and focused analysis
Crucial pondering and downside fixing: The flexibility to tackle and remedy issues creatively and in a structured and methodical manner
Flexibility: The flexibility to critically assess and consider completely different approaches to points and issues
three. Recognise, describe and analyse taxation points and ideas with regard to issues encountered in industrial settings. Analysis: The flexibility to conduct thorough, correct and focused analysis
Crucial pondering and downside fixing: The flexibility to tackle and remedy issues creatively and in a structured and methodical manner
Flexibility: The flexibility to critically assess and consider completely different approaches to points and issues
four. Exhibit an understanding of substantive areas of taxation regulation together with earnings tax, items and companies tax and fringe advantages taxes. Flexibility: The flexibility to critically assess and consider completely different approaches to points and issues
5. Focus on the function and tasks of accountants with regard to taxation regulation and the preparation of taxation paperwork. Communication: The flexibility to speak successfully, each orally and in writing, with a various vary of audiences
Moral habits: The flexibility to establish and perceive moral issues and show moral behaviour
Due Date and Time
Week eight
Friday 5pm
Weighting 30%
Assessment Description
This task explores sensible points in taxation regulation. It is vital so that you can have time to assume by means of methods to construction and current arguments.
Detailed Submission Necessities
Particular person
Question Assignment 1 (10 marks)
Through the earnings yr ended 30 June 2019/20 Nicholas, a resident, acquired wage and wages earnings of $35,00Zero, curiosity earnings of $three,00Zero, an exempt compensation fee of $23,00Zero, fee earnings of $four,00Zero, a Residing Away from House Allowance (LAFHA) of $20,00Zero, an Time beyond regulation Allowance $2,00Zero and a rental lack of $9,00Zero. Assuming that he has PAYG (W) of $6,00Zero. Ignore tax offsets.
Required: what’s Nicholas tax payable / refund (Please present all workings)?
Question Assignment 2 (10 marks)
The Disco Biscuit Firm is a resident firm that owns and operates a automotive dealership. Through the yr, the corporate has supplied the usage of a automotive to quite a few folks. The main points are proven under. For every of the under transactions, clarify by referencing to laws and case legal guidelines relevant whether or not the availability of the car represents a fringe profit.
a. Mary, the spouse of Damon who’s a salesman of the corporate, acquired a automotive to make use of.
b. Gabby operates the enterprise of offering an promoting consulting companies to purchasers. The Disco Biscuit Firm offers Gabby the usage of a Mercedes for her companies supplied to it as a substitute of paying a charge for her service upon their mutual settlement.
c. Nigel, a salesman, receives the usage of a Lexus, a luxurious automotive.
d. Tristan, the managing director, is given the usage of a Jaguar (automotive) as a substitute of receiving a director’s charge.
Question Assignment three (10 marks)
Through the 2019/20 earnings yr, Maxwell Johnson, bought numerous property that realized capital good points and losses as follows:
Objects Quantity ($)
Loss on sale of motorized vehicle 5,600
Acquire on sale of yacht (price base not listed) 21,900
Acquire on sale of vintage crockery (listed price base) 13,900
Loss on sale of knickknack 1,300
Acquire on sale of land held as an funding (price base not listed) 24,00Zero
Acquire on sale of household dwelling (price base not listed) 38,00Zero
Loss on sale of shares 19,300
Acquire on sale of rental property (listed price base) 21,00Zero
Acquire on sale of uncommon comedian ebook assortment (price base not listed) 7,500
Capital loss from a earlier yr from the sale of shares 6,400
In every case above, the asset has been held by Maxwell for greater than 12 months and the related minimal price thresholds have been exceeded.
Required: calculate the minimal web capital acquire that Maxwell is required to incorporate as assessable earnings for the 2019/20 earnings yr.
Assessment
Part Necessities Weight 10% HIGH DISTINCTION
100-85% DISTINCTION
84-75% CREDIT
74-65% PASS
64-50% FAIL
49-Zero%
Construction
N/A Mark
Content material
N/A Mark
Format, Grammar, Presentation and Referencing
N/A
TOTAL MARK 30 Total feedback:
Question Assignment 2
2a.
Using the corporate by Mary quantities to a fringe profit. On this case, since Mary is the spouse to Damon, who’s an worker of Disco Biscuits Firm, signifies that Damon has acquired the corporate automotive therefore he’s topic to fringe profit tax. The subject material on this case is the corporate automotive and Damon being an worker he was allowed by the corporate to let his spouse use the automotive. Due to this fact, on this case, this quantities to a fringe profit as per the availability of part 7 (1) (a) (i) Division 2 of the Fringe Advantages Tax Assessment Act 1986. The part states that automotive advantages apply when an worker or an affiliate of the worker makes use of an employer’s automotive for private use.
2b.
On this case, Gabby is a advisor to Disco Biscuit Firm and has an settlement with the corporate to be supplied a Mercedes Benz for the companies supplied. Gabby, in his capability as a advisor doesn’t make him an worker of Disco Biscuit Firm which additionally exempts him from fringe profit which is principally accorded to staff of a specific firm.
2c.
Nigel is an worker of Disco Biscuit Firm, therefore receiving a luxurious automotive quantities to a fringe profit. The corporate is permitting Nigel to make use of the automotive for private use in addition to the automotive is a luxurious automotive and never a industrial car. If it had been a industrial car to make use of in his capability as a gross sales individual this may not have amounted to a fringe profit to him. The choice on this part is predicated on the provisions of Part eight (2) (a) of the Fringe Profit Assessment Act 1986, the place a automotive could also be exempted from fringe advantages is it’s a van, or utility truck designed to ship or carry a load of lower than one tonne.
second.
Tristan, the managing director receiving the use a Jaguar as a substitute of a director charges means his employment advantages are loved within the type of utilizing an organization’s automotive. Due to this fact, this implies he shall be utilizing the corporate’s automotive for private use which ends right into a fringe profit and this can be assessable as a automotive profit and never employment earnings beneath the Revenue Tax Assessment Act 1936 (Fringe Profit Tax Assessment Invoice 1986).
Question Assignment three
Maxwell Johnson
Web Capital Positive factors for 2019/2020
Quantity ($)
Positive factors topic to Capital Positive factors Tax
Acquire on sale of vintage crockery (listed price base) 13,900.00
Acquire on sale of land held as an funding (price base not listed) 24,00Zero.00
Acquire on sale of rental property (listed price base) 21,00Zero.00
Acquire on sale of uncommon comedian ebook assortment (price base not listed) 7,500.00
Complete capital good points 66,400.00
Much less Capital Losses
Loss on sale of jewelry 1300
Loss on sale of shares 19300
Capital loss from a earlier yr from the sale of shares 6400
Complete capital losses 27,00Zero.00
Minimal web capital acquire 39,400.00
Notes
All property should not subjected to capital good points tax. Capital good points tax is relevant on shares, items and related investments, cryptocurrency, leases, goodwill, licenses, international forex, contractual rights, and main capital enhancements made to land or pre-CGT property collectables and private use property above a $10,00Zero Chung 35). Capital good points tax is exempt on depreciating property, foremost residence, private use gadgets much less $10,00Zero, and collectables much less $500.
Loss on motorized vehicle has not been thought-about within the computation of web capital good points for the reason that motorized vehicle is a depreciating asset and depreciating property are exempt from capital good points taxes. Additionally, acquire on the sale of a yacht not been used to compute the web capital acquire since it’s a private use merchandise which is exempt from capital good points tax. Furthermore, the household house is exempted from capital good points because it represents the principle residence of Maxwell Johnson. All different property have been used within the computation of the Capital good points tax since they’re topic to capital good points taxes.
Works Cited
Chung, Eddie. “Absolutely the newbie’s information to capital good points tax.” REIQ Journal Could 2017 (2017): 35.
Fringe Profit Tax Assessment Invoice 1986.
Fringe Advantages Assessment Tax Act 1986.
Revenue Tax Assessment Tax Act 1997.
