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.
Nobody downloaded yet

Australian taxation law - Assignment Example

Comments (0)
[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 paper
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
Comments (0)
Click to create a comment
Assessment for Taxation Law
Generally, lump sum amounts are not subjected to income tax assessment, because they are considered not income in nature. Furthermore, such amounts are not subjected to capital gain tax if they fall under certain class which is exempted. Nonetheless, lump sum amount is taxable if its purpose is to reimburse not more than a loss of income.
4 Pages(1000 words)Assignment
Australian taxation law
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 Australia between January 2013 and April 2013 and a further two month contract in June and July 2013 and returns to India.
4 Pages(1000 words)Assignment
Taxation law
Furthermore, it provides cases and other sources of law or information that may apply while taking the given situation in consideration. Keywords: Assessable income, tax position PART A The 2 cases concerned in the current situation are Federal Commissioner for Taxation v Dixon and Scott v Federal Commissioner for Taxation.
8 Pages(2000 words)Essay
Australian Economy
The Reserve Bank acts as the central bank of Australia, and manages the monetary policy in the country. The roles of the bank include stabilizing prices, guarding the welfare of citizens, printing and issuing money, and creating full employment level in the country.
8 Pages(2000 words)Assignment
Taxation portfolio
In addition, the legal component of taxation emphasizes on complex case laws and difficult statutory provisions. As echoed by Smulders and Marcos, there is a wide preconception that taxation entails complex legal technicalities involving a lot of mathematics and therefore, lacks coherent legal principles and policies (370).
20 Pages(5000 words)Assignment
Australian Migration Law
Also, you are 38 years of age, dropped out of school at age 17, spent quite a few years in athletics and working as fitness instructor before you trained up as welder. The application for this visa is made under any one of the various subclasses, viz. form 47PT, 47SP, 47SP (Internet), 47CH, 47PA, 47OF, 47SK, 47ES, 47BU, 47SV, 147, 157A, 852, 866, 918, 1002, 1003, 1005, 1066, 1096, 1150, 1150E (Internet), 1276 or 1276 (Internet).
4 Pages(1000 words)Assignment
Assignment taxation law
Things such as property including land or real estates making the initial business costs fall under direct taxation. Indirect taxes include
2 Pages(500 words)Assignment
Conversely, tax evasion involves escaping tax payment through illegal means. In this case, an individual misrepresents or conceals the actual state of his or her affairs to tax authorities such as the presentation of dishonest tax reports (James,
3 Pages(750 words)Assignment
Australian Taxation Law
use rents received are so low($11000) compared to the interest on the loan used to buy the property of $18000 leading to a negative taxable income of $9800. a) The gift from mother to Fiona will be valued at $5000 for the mother’s calculations of tax and will be categorized
4 Pages(1000 words)Assignment
Let us find you another Assignment on topic Australian taxation law for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us