Relation to any gst-inclusive acquisitions

Assignment Help Taxation
Reference no: EM13879052 , Length: word count:2000

Question 1:

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?

Question 2:

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 profits 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, finding 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.

Verified Expert

Reference no: EM13879052

Compute the project profitability index for each project

Compute the project profitability index for each project and rank the four projects in terms of net present value, project profitability index and internal rate of return.

Discuss capital gains tax

Critically discuss the whether capital gains should be subject to a 50% discount. Please consider this in the context of fairness, economic efficiency, protection of governm

How much is sparrows tax liability for 2011

During 2011, Sparrow Corporation, a calendar year C corporation, had operating income of $510,000, operating expenses of $370,000, a short-term capital loss of $25,000, and

What is the couple marriage penalty or benefit

If they were to file separate tax returns, Lisa would have reported taxable income of $125,000 and Fred would have reported taxable income of $175,000. What is the couple's

Build a new production plant factory

Concrete & Transport Limited carries on business as a manufacturer and supplier of concrete and concrete products. It also operates a railway to transport material and produ

Harvey and jeffrey were the only partners in the current yea

On December 31 of last year, Harvey gave his son, Jeffrey, a gift of a 30% interest in a partnership in which capital is a material income-producing factor.  For the current c

What are the nature and amount of any carryovers

What are the nature and amount of any carryovers to 2013? What is the taxable amount due after using the tax credit? Calculate the net capital gain (loss) for 2012. How is thi

Identify two factors that increase audit risk

HI6026 Audit, Assurance and Compliance ASSIGNMENT. For each of the following items in Forest Ltd's financial report, identify two (2) factors in the information provided tha

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