Analyze and then advice abc of its fbt consequences

Assignment Help Taxation
Reference no: EM13874064 , Length: 2000 Words

Scenario-1: Topic: Fringe Benefit Tax

Alan is an employee at ABC Pty Ltd (ABC). He has negotiated the following remuneration package with ABC:

• Salary of $300,000;

• Payment of Alan's mobile phone bill ($220 per month, including GST). Alan is under a two-year contract whereby he is required to pay a fixed sum each month for unlimited usage of his phone. Alan uses the phone for work-related purposes only;

• Payment of Alan's children's school fees ($20,000 per year). The school fees are GST free.

ABC also provided Alan with the latest mobile phone handset, which cost $2,000 (including GST).

At the end of the year ABC hosted a dinner at a local Thai restaurant for all 20 employees and their partners. The total cost of the dinner was $6,600 including GST.

Required:

(a) Analyze and then advice ABC of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2015. Assume that ABC would be entitled to input tax credits in relation to any GST-inclusive acquisitions.

(b) How would your answer to (a) differ if ABC only had 5 employees?

Scenario-2: Topic: Residence and Sources

The Big Bang Company was set up by Ed, an Australian resident. It is incorporated in Singapore and has two directors who are resident in Singapore and who hold board meetings in Singapore. Each director has two shares in the Big Bang Company, which they hold on trust for Ed. The Big Bang Company owns real property, all of which is outside Australia, and makes its pro?ts from commercial property leases on a large scale. Ed does not attend the board meetings in Singapore; however, the constitution of the Big Bang Company provides that the decisions of the directors are only effective if Ed concurs with them. The directors carry on all operational activities, such as collecting rent, paying commission, ?nding tenants, making minor repairs and maintaining the buildings.

Required:

Is there any possible scenario in which the Big Bang Company could be considered a resident of Australia for tax purposes? Refer to Ruling TR 2004/15, justify your answer considering all the possibilities applicable in this scenario to become a resident of Australia. A detail analysis of each possibility is required.  

Word Limit: 2000

Verified Expert

Reference no: EM13874064

Example on tax regulations

How would you address the situation and would you address the situation differently if your manager insisted that you include the amount.

To receive or inspect confidential tax information

Assume that you are Friendly Frank, Helpless’ neighbor, who has prepared the return without compensation. What document(s), if any, must you file with the IRS to accompany the

Restrictions on tax deductible and deductions and losses

From the e-Activity, indicate the case and provide a brief synopsis of the issue in question. Next, evaluate the degree to which the claimed business deduction(s) for the spec

Discuss all taxation implications of bhc selling its shares

Discuss the all the taxation implications of BHC selling its shares in THYME. Explain the tax underpayments (if any) and penalties which you would expect to arise in respect o

Fundamentals of accounting for income taxes

The objective of this activity is for you to be aware of what is happening in the real world that relates to intermediate accounting--to practice your wriitng skills and mak

Calculate eds realized and recognized gain on the exchange

Calculate Eds realized and recognized gain on the exchange and his basis for the office building and calculate Polly's realized and recognized gain on the exchange and her bas

What is erins ordinary income for the current tax year

What is Erins ordinary income for the current tax year and Advise ABC of its FBT consequences arising out of the above information, including calculation of any FBT liability,

Calculation of fbt liability

Advise Periwinkle of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2014. You may assume

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd