., Taxation

Assignment Help:
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.
(a) Advise ABC of its FBT consequences arising out of the above information, including calculation of
any FBT liability, for the year ending 31 March 2014. 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?
(c) How would your answer to (a) differ if clients of ABC also attended the end-of-year dinner?

Related Discussions:- .

Tax haven, T ax Haven A country with tax-preference laws for fo...

T ax Haven A country with tax-preference laws for foreign organization and individuals. 3 classes of jurisdictions are provided to as tax havens those are (1) levy taxe

Deferred tax asset, Deferred tax asset; taxable income given; valuation all...

Deferred tax asset; taxable income given; valuation allowance. At the end of 2012, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a

Explain the effects of taxation on the equilibrium of a firm, Q. Explain th...

Q. Explain the effects of taxation on the equilibrium of a firm? Suppose a tax is imposed on the producers of a commodity, the tax is on each unit for they produce. Naturally,

Tax corporation return, King Corporation, an accrual method taxpayer, repor...

King Corporation, an accrual method taxpayer, reports the following results for 2014: Regular taxable income before regular tax NOL deduction $800,000 Minus: Regular tax NOL deduc

Trusts, how are trusts considered a tax minimisation vehicle?

how are trusts considered a tax minimisation vehicle?

Taxation Accounting - Capital gains tax (CGT), Critically Evaluate overseas...

Critically Evaluate overseas experiences with this form of tax. (e.g. UK or Australia)

What is the total tax, Melissa Tang has recently sold her stake in Global M...

Melissa Tang has recently sold her stake in Global Manufacturing Ltd., a firm that she founded in 1990, for $15 million. She is now trying to decide how best to invest the proceeds

Write Your Message!

Captcha
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