Nobody downloaded yet

Accounting Law - Assignment Example

Comments (0) Cite this document
Summary
The important facts at hand to consider are: Jonathan’s age is 57 years old; his superannuation fund balance is $700,000; that amount is made of the following components: $140,000 voluntary after-tax contribution of Jonathan …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.4% of users find it useful
Accounting Law
Read TextPreview

Extract of sample "Accounting Law"

Download file to see previous pages The Superannuation Industry (Supervision) Regulations 1994 – Schedule 1 provides for the conditions of release of the superannuation funds under Part I, sections 101 to 114 thereof, namely: retirement; death; terminal medical condition; permanent incapacity; former temporary resident under certain conditions; payment to the Commissioner of Taxation under the Superannuation (Unclaimed Money and Lost Members) Act 1999; termination of employment on or after July 1, 1997 where the member’s fund does not amount to more than $200; severe financial hardship; attainment of age 65; compassionate grounds; termination of employment with an employer who contributed to the funds for the member; temporary incapacity; attainment of preservation age; a found lost member with fund balance amounting to less than $200; certain conditions under the Income Tax Assessment Act 1997; under s 292-B of the Income Tax (Transitional Provisions) Act 1997, and; so provided as release conditions under §62(1) (b) (v) of the 1994 Act. In the problem at hand, Jonathan’s primary condition for release of his superannuation fund balance is retirement, which is further defined as a state when the person under gainful employment of another is set to terminate that employment and will never again seek employment either on a full or part time basis. 1 In addition, that employee contemplating retirement must have reached the age of 60 or if below 60, must have reached his or her preservation age, according to s. 7 of the same Act. The problem does not state, however, if Jonathan has reached his preservation age, a condition assumed if a person is born under the following dates: before 1 July 1960 to 30 June 1961, if 55 years of age; between 1 July 1960 to 30 June 1961, if 56 years of age; between 1 July 1960 to 30 June 1962, if 57 years of age; between 1 July 1962 to 30 June 1963, if 58 years of age; between 1 July 1963 to 30 June 1964, if 59 years of age, or; after 30 June 1964, if 60 years of age.2 Fig. 1 Superannuation Interest Tax3 Thus, for Jonathan to be able to able to access his superannuation fund balance, he must have been born between 1 July 1960 to 30 June 1962, since he is now 57 years of age, otherwise he will not be able to access the same on the ground of retirement. Assuming he was born between that period, Jonathan can lawfully access his fund and the tax due on the benefit from the superannuation fund depends on the following factors: age; whether as lump sum or income stream, and; the taxed or untaxed elements present in the fund.4 Figure 1 above illustrates how taxes of superannuation benefits are determined. A superannuation benefit, according to the diagram, may have components, which according to s. 307.120 of the Income Tax Assessment Act 1997 (ITAA 97 hereafter), may be a taxable or tax-free component. Superannuation income streams paid on or after 1 July 2007 have tax free components that are usually the “crystallised segment and the contributions” while the taxable component is the amount of the income stream benefit minus its tax free component. A superannuation income stream as a “regular series of payments: made directly from accumulated superannuation contributions or purchased with a lump sum” (Guide to Social Security Law 2011) while the ITAA Regulations define it as: “an annuity for the purposes of the SIS Act in accordance with the subregulation 1.05 (1) of the SIS Regulations; or a pension for the purposes of the SIS Act in accordance with subregulation 1.06 (1) of the SIS Regulations; or a pension for the purposes of the RSA Act in accordance with regulation 1.07 of the RSA Regulations.” In addition, it is also “an annuity or pension within the meaning of the SIS Act; and commenced after 1 September ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Accounting Law Assignment Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from https://studentshare.org/law/1430969-you-are-working-as-a-graduate-accountant-at-the
(Accounting Law Assignment Example | Topics and Well Written Essays - 2000 Words)
https://studentshare.org/law/1430969-you-are-working-as-a-graduate-accountant-at-the.
“Accounting Law Assignment Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/law/1430969-you-are-working-as-a-graduate-accountant-at-the.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Accounting Law

Tax Law & Accounting

...Tax law and accounting under GAAP are facing wide controversy as to their functions to the society nowadays. The ratifications of earlier tax laws have created the modern tax statutes with additional objectives. The main objective is to simplify the rulings of previous tax laws with a purpose that supporting government operations will remain. However, the emerging of additional objectives that deals with the unfair imposition of income tax, and specialized economic objectives have made the structure of modern tax laws complicated. Many have expressed amazement and frustration with regard to the substantial complexity of tax laws,...
4 Pages(1000 words)Research Paper

Law for Accounting assignment

...?Law for Accounting The question pertains to the basic formation of contract issue in this question requires an analysis in respect of offer, invitation to treat, acceptance, revocation and consideration. Each of the issues will be discussed by stating the law first, with an analysis on the facts and then a conclusion in that respect would be made. The formation of contracts and its legal effectiveness is a subject which has been critically reviewed in case law and statutes. A contract can exist even if it is oral or informal but in strict legal terms for it to be legally effective, certain criterion must be met. Formation of Contract is based on firstly, an ‘offer’, which must be followed by an acceptance. Secondly, there must... with Eric...
16 Pages(4000 words)Essay

Law of Accounting Coursework question

...?Law for Accounting The issue in this question relates to the basic law on contract formation that is the proposition of offer, acceptance, revocation of offer, invitation to treat, instantaneous communication for offer and acceptance, counter-offer, the aspects of consideration and whether existing contractual obligation can constitute to be good consideration. The law on each of these would be discussed in line with facts of the case and a conclusion in accordance with the law would be made. The notion of offer and acceptance and the resultant formation of contracts has been a notion which has been developed particularly by common law and there has been statutes enacted upon the area as well. It is a well established principle... to the...
16 Pages(4000 words)Essay

Law for Accounting coursework question

...of an event the non-occurrence of which was a basic assumption on which the contract was made, his remaining duties to render performance are discharged, unless the language or circumstances [of the contract] indicate the contrary.”3 The leading case in English law is that of Krell v Henry [1903] 2 KB 740. In Krell, the defendant rented a flat for the express purpose of watching the coronation of Edward VII. However, Edward VII fell ill, and the coronation did not take place. Because this was the only reason why the defendant rented the flat in the first place, the defendant refused to pay the bill for the room, and the plaintiff, Krell, sued to force Henry to pay for the room. The Krell court looked at whether there was...
16 Pages(4000 words)Essay

Business Law and the Accounting Profession

...?Business Law and the Accounting Profession Introduction Business is used as an instrument to accomplish one's vision. Its huge impact on the societymay bring a positive or negative effect depending on how the individual practices it. Law is generally described as the rule that every individual is obliged to follow regardless of their rank in the society. It governs all transactions in the land including business. Law is often associated with ethics. Ethics is the field of study that aims to encourage all people to act in accordance with the law. It focuses more on one's morality, the ability to decide in a rightful manner taking into consideration any...
5 Pages(1250 words)Research Paper

Law For Accounting: Employment Law

...? LAW OF ACCOUNTING: EMPLOYMENT LAW of James’ Employment Status In James’ case the courts would firstdetermine whether he is an employee of the hotel or a private contractor. It would determine whether having been taking classes in the hotel’s fitness club on a regular basis for the last six years qualifies James to be an employee of the hotel. It is on the understanding of his contractual service at the hotel that he would be able to receive any redundancy payment and other statutory rights from the hotel upon termination of his services (Lockton, 2006, p. 137-145). Control Test Method The argument on whether James is an employee or is self employed may first be determined by a court based the Control Test method. This test seeks... to...
5 Pages(1250 words)Essay

Business A formal report Law on Pollution Accounting

...R Ramasamy Murali Academia-Research.Com Assignment 19 April 2006 Business A formal report - Law on 'Pollution Accounting' "Profitability is the sovereign criterion of the enterprise"(Peter Drucker).# True. But then a business tramples upon the sovereignty of nature for profitability. A business draws it's strengths and resources from nature and society. So a business is under every legal, moral and social obligation to protect and preserve the nature and there by secure the society. This is because, the activities of business results in environmental pollution in one form or the other causing damages to nature and society. Scott C.Doney, in his article "The Dangers of Ocean acidification", has written: About a third... the...
4 Pages(1000 words)Essay

Tax Law & Accounting

...TAX LAW Tax Law and Accounting Word Count: 1073 a. Define the objectives of modern income tax statutes. To begin with, modern income tax statutes were created so that people would have code to refer to when they had to pay taxes. These statutes are immutable and basically subject to revision every year. "There are three sources of modern income tax statutes which are legislative, executive and judicial[Legislative statutes are discussed here.] The Internal Revenue Code[, comprised] of statutory provisions relating to Federal taxation only existed as individual revenue acts before 1939. In 1939 Congress codified the Federal tax laws" ("Tax Law and...
4 Pages(1000 words)Essay

Environmental Analysis (company reporting)

...and resources such as land, water, air and others. The environmental costs will include the amount the company will have to pay in order to indemnify the victims of the company's water waste victims. The environmental costs will include the amount of money spent to clean up the land and water area that they has been contaminated with dirty water sewage as well as the pollution of the air by the smokestacks with the company's carbon dioxide emissions in violation of the law. The environmental costs includes costs to clean up the company's contaminated sites, penalties for violation of the UK and Germany environmental laws. Environmental accounting also includes the taxes that the...
12 Pages(3000 words)Essay

Business Law in Finance and Accounting

...Running head: Business Law in Finance and Accounting 10th June Section Barbara, Helen and Maureen business organization Given the fact that the three partners have been working together for the fixed period, the type of the business organization that they currently operate is a joint venture. In a joint venture, parties agree to come up with a new entity by contributing their assets. Additionally, the partners are responsible for controlling their assets and they share profits equally. Being one of the forms of partnership, joint venture is for a limited period and when the partners repeat the activity they are undertaking they are treated as ongoing partners (Alix, 2014) . Upon the dissolution of the...
8 Pages(2000 words)Essay
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 Accounting Law for FREE!

Contact Us