Nobody downloaded yet

Australian taxation law - Assignment Example

Comments (0) Cite this document
[Author] [Manager] [Subject] 28 May 2015 AUSTRALIAN TAXATION LAW 1. The fringe benefits tax liability of Chatswood Pty Ltd for the year ended 31 March 2011, shall be based on the ‘Higher gross-up formula (type 1), which means that the higher gross-up formula was introduced to avoid allowing employers the benefit of GST credits for goods and services purchased for the private use of employees…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
Australian taxation law
Read TextPreview

Extract of sample
"Australian taxation law"

Download file to see previous pages (1+GST rate) ? FBT rate Hence, the following benefits of Paul shall be as follows: Car fringe Benefit $22,500 Entertainment Fringe Benefit $ 2,000 Loan Fringe Benefit $ 8,000 ---------------- Employer’s type 1 aggregate fringe benefits $32,500 amount 46.5% + 10% ------------------------------------------- $32,500 x (1 – 46.5%) ? (1+ 10%) ? 46.5% rate $32,500 ? 2.0647 = $67,102.75 Total Fringe Liability This is the total value of the fringe benefits tax liability of Chatswood Pty Ltd. for the year ended 31 March 2011. For purposes of computation, ‘the FBT year is the 12 months beginning 1 April and ending 31 March. Currently, the FBT rate is 46.5%. A GST of 10% is applied on most goods and services that are supplied in Australia and on goods imported into Australia’2. ‘If an employee receives certain fringe benefits with a total taxable value of more than $1,000 in an FBT year (1 April to 31 March), employer must report the grossed-up taxable value of the benefits on their payment summary for the corresponding income year (1 July to 30 June). This is called the reportable fringe benefits amount’3. Therefore, the Fringe Benefits Tax (FBT) that should be paid by the employer Chatswood Pty Ltd., at the end of the year is $67,102.75. The car fringe benefit, the loan fringe benefit and the entertainment fringe benefit which were granted to Paul by his employer are all entitled to Goods and Services Tax (GST) credit that is available to Chatswood Pty Ltd. However, the $1,000 salary of Paul is not considered as a fringe benefit since there is an imposed tax on the salary which is being paid by the employee. As defined under the Finance Act of 2005: “Fringe Benefits” means any consideration for employment provided by way of: (a)   “any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees) (b)   any free or concessional ticket provided by the employer for private journeys of his employees or their family members;  and (c)    any contribution by the employer to an approved superannuation fund for employees”.4 The total value of all fringe benefits given to a particular employee by his or her employer in an FBT year is known as their individual fringe benefits amount. 2. Peter’s is liable to pay a capital gains tax (CGT) for the sale of the gift shop for the year 2010/2011 based on the following computation: Gross Sale Proceeds from the gift shop: $840,000 Less: Incidental Cost of Disposal : $(60,000) Net Sale Proceeds: $780,000 Less Cost of Asset: $(450,000) Capital Gain: $330,000 Therefore, Peter shall be liable to pay a CGT on his gain amounting to $330,000. ‘Capital gains tax is a tax on the profits which may be made from the sale of capital assets. Only individuals are liable to pay CGT, corporations are not liable to CGT. A liability to pay CGT arises only when a chargeable person makes a chargeable disposal of a chargeable assets’5. Some of chargeable assets include lands and buildings, paintings, jewelry, plant and machinery. However, no CGT shall be imposed on the sale of his main residence as he is entitled to ‘Private Residence Relief’. To qualify for the exemption based on the ‘Private Residenc ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Australian taxation law Assignment Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from
(Australian Taxation Law Assignment Example | Topics and Well Written Essays - 2000 Words)
“Australian Taxation Law Assignment Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Australian Taxation system
...?Australian Taxation system Research done in several Australian newspapers has testified that taxation is the backbone of the Australian economy. The country’s system of government is divided into the federal government which controls all taxations that take place in the country. There are also state governments which control taxation taking place in the several states that are in the country. The last system of government present in Australia is the local governments. According to Macfarlane in his book “Australian Monetary Policy in the Last Quarter of the Twentieth Century”, it is evident that...
6 Pages(1500 words)Essay
Australian Law
...The Role of The Parliament and the Courts in the Law making process In Australia, the parliament and the court work had in hard in making new legislations. The court cannot function until the legislature creates rules in accordance with the constitution that make it to go into effect. However, after the courts have been created, the legislature activities get to be thoroughly scrutinized by the courts to ensure that they it do not involve in dealings that are not in the interest of the common citizens. This means that although the legislature had the power to make laws governing the land, these decisions can be challenged in a court of law. Legislative issues arising from the legislature...
4 Pages(1000 words)Coursework
Australian law
...? The Liability of Accountants and Auditors – Just How Vulnerable are these Professionals to any negligent action Under the Australian Consumer Law or at the Common Law? Name University Course Tutor Date What is Professional Negligence? And The History of Negligence Law in Relation to Professional Advisors One of the most important advancements in the laws governing professional negligence was the establishment of duty of care in negligence laws under the land mark case of Donoghue v. Stephenson that saw the decomposing remains of a snail found in a ginger beer bottle mark the beginnings of modern laws on negligence. In...
4 Pages(1000 words)Essay
Australian taxation law
...+ PART A EXPLAIN briefly and VALI by reference to appropriate sections of ITAA 97 andappropriate Case Law as to whether the individuals listed below are residents of Australia for taxation purposes For an individual to qualify to be an Australian resident for taxation purpose, that person must have lived in Australian for the entire life or have moved in to stay in Australia. Further, one can also become a resident after being in Australia for more than half of the income year and if he/she is an overseas student who enrols to study a course lasting for more than six months. 1. An Indian IT consultant who accepts a four month contract of employment in...
4 Pages(1000 words)Assignment
Australian Law
...?Australian Law Discuss why the decision of the High Court that a recently enacted Statute is unconstitutional would be seen by the Government more as a serious set-back to its legislative reform programme than a decision by a Judge of the Supreme Court interpreting the meaning of a key provision in the Statute in a manner contrary to the Government’s intentions, as demonstrated by the speech of the Minister concerned, when he/she introduced the proposed legislation in Parliament. Introduction: The Australian High Court is the Supreme Court in the hierarchy of Courts in Australia and also the last Court of Appeal. It has both appellate and original jurisdiction, the authority of judicial evaluation over laws and regulations passed... system...
3 Pages(750 words)Essay
Taxation Law: Australian Foreign Income Laws
...? Taxation Law: Australian Foreign Income Laws Introduction There are a number of issues to consider with regard to the tax obligations of a firm. For small businesses and individuals in business, there may be some exemptions which may be applicable to their case. According to the Australian Tax Office, businesses or individuals who offer personal services such as contracting and consultancy can benefit from some tax cuts. The Australian Tax Office defines personal services as those services, which are derived from personal efforts or skills. In this regard, the Berta Company can be seen as offering personal services as it offers direct...
7 Pages(1750 words)Essay
Taxation law
...University. (1998). Journal of Australian taxation. North Ryde, N.S.W: CCH Australia [and] Monash University, Faculty of Business and Economics, Dept. of Business Law and Taxation. (2013). Income. [online] Retrieved from: [Accessed: 25 Sep 2013]. Mason, T. J. (2010). Income tax law: Principles and applications. Frenchs Forest, N.S.W: Pearson Australia. (2013). LEC - Subject Pages - Taxation - Useful Links. [online] Retrieved from: [Accessed: 25 Sep 2013] Woellner, R. H....
8 Pages(2000 words)Essay
Taxation Law
...such payments (Rockliffs Solicitors & Barristers, accessed 25.10.05). The Australian Tax Office is responsible to ensure that that nobody steals public money through tax fraud and for this purpose, it has auditors to carry out the investigations but it does not have powers to take tax criminals to the courts. Once it detects a fraud, then it refers the matter to the Federal Police. The Taxation Bill 2002 provides the Australian Tax Office with a broad range of powers to obtain comprehensive information on the administration of the tax laws. The Inspector-General of Australian Tax Office is able to invite submissions from the public or from particular...
20 Pages(5000 words)Essay
Taxation Law
...: i) The servant approves that in consideration for wages, salaries or other remuneration, he will deliver his work and skill in the performance and enactment of some service for his master. ii) He agrees explicitly or impliedly that, in the performance, some service he will be subject to the others control and directives in a sufficient degree to make the other master. iii) The other provisions of the contract are consistent with being a contract of service. The aforementioned factors were created by common law courts to determine if a person was employed or self-employed. There are other numerous factors that exist and that can be used. They include a) Holidays pay. b) Payment when absent for illness. c) Supply of...
8 Pages(2000 words)Essay
Australian Taxation Law
...Australian Taxation Law Australian Taxation Law Q a) Cairns property Purchased July 1995 for $ 250000 Rent of $2400 per month Expenses: verandah repair $2400, interest on loan $12,000, land tax $300, garden maintenance $800, fans $980. Total revenues (2400 X 12) 28,800 Less Expense (allowable) Verandah repair (2400) Interest on loan (12,000) Land on tax (300) Garden maintenance (800) Fans (980) Net taxable income 11,520 Airlie Beach property Purchased February 1986 for $67000 and now worth $ 450000. Rent of...
4 Pages(1000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Assignment on topic Australian taxation law for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us