Discuss if tony has any tax implication

Assignment Help Taxation
Reference no: EM13488829


Refer to the relevant case law and statute law in your answer. You must read the presentation guidelines in the subject outline. Your answer must NOT 3 A4 pages, excluding the bibliography.


Alex is a tax resident of Australia. He is employed as a mechanic at Fix-A-Car Pty Ltd with a salary of $60,000 pa. In the course of his employment the company Alex received a car allowance of $5,000 and reimbursed him $200 for his parking expenses for the year ended 30 June 2012.

In the weekends Alex repairs automobiles in his workshop in his house backyard to supplement his income. His close relative Tony usually brings his car to Alex's home for servicing every month. Being a close relative to Alex, he did not to charge Tony for all the work done. Tony who loves gardening in return does Alex a favor by maintaining Alex's garden every weekend.

The recent economic downturn the Fix-A-Car Pty Ltd has to downsize. As a result Alex was made redundant and was offered a redundancy payment of $40,000. Alex has worked in that company for 5 years.


Advise Alex on his tax implication on the income that he received. Discuss if Tony has any tax implication?


This assignment has been designed so that you can:

• gather and integrate your knowledge on the topics covered thus far;
• investigate in depth the cases, rulings and legislation that are fundamental to taxation law;
• demonstrate your ability to apply that knowledge to a hypothetical, practical situation;
• exercise critical and reflective judgments;
• demonstrate your ability to conduct research using provided materials as well as other legal resources;
• develop your written skills; and
• Demonstrate time management skills.

Students should be able to identify and apply legislation and case law to the issues identified as well as demonstrates the ability to analyses the issues fully and discusses the application of taxation principles.

Reference no: EM13488829

Explain the income tax implications of the employee

Explain the income tax implications of the employee. Lacey left Australia on 1 July 2014 to set up Break Fast's New York office. She does not intend to return to Australia fo

What is waters current e and p for this year

Taxable income includes a deduction for $40,000 of depreciation that exceeds the depreciation allowed for E&P purposes.Assume a 34% corporate tax rate. What is Water's curre

Discuss ethical and legal responsibilities in tax practice

Remember all written assignments are run through plagiarism detection software and the University has a very strict policy on this. You may want to re-read the policy on pla

Advise periwinkle of its fbt consequences arising out

Calculate Freds net capital gain for the current year. Assume he also has a net capital loss from last year of $10,000 arising from the sale of shares. Would your answer be

Compare the tax advantages of debt versus equity

Compare the tax advantages of debt versus equity capital formation of the corporation for the client and debt or equity for capital formation of thenew corporation, based on y

How do changes in volume affect the break-even point

Whitmore Corporation predicts it will produce and sell 40,000 units of its sole product in the current year. At that level of volume, it projects a sales price of $30 per un

Tax cost of providing the public education

Public schools are financed by tax dollars and provide a certain level of education for every student who enrolls. The tax cost for the public school is the same whether one c

What tax planning advice could you give

Who will be able to claim the children as dependents - What is each one's filing status for the current year if neither one remarries - What tax planning advice could you give


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