., Taxation

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?
Posted Date: 1/20/2015 1:40:39 AM | Location :







Related Discussions:- ., Assignment Help, Ask Question on ., Get Answer, Expert's Help, . Discussions

Write discussion on .
Your posts are moderated
Related Questions
1. a company issues $10,000, 10%, 5 year bonds with semi annual payments principal amount, face value matuity value or par value: $10,000 stated or contract interest rate: 10% (per

Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju

Jenny is 35 years of age, single and is a professional hairdresser. She was born in Australia, however she often travels overseas for extended periods for work purposes. Jenny rec


Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husb

I WOULD LIKE TO KNOW ABOUT GST. FROM WHERE IT HAVE COME AND HOW IT WORKS. ALSO INFORM ME WEATHER IT IS APPLICABLE IN INDIA OR NOT.

Use the information provided in question 4 to answer this question. a) What must happen to taxes in year t for the primary deficit to be zero? b) What must happen to taxes in y

Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $24 million, of which 80% has been depreciated. The used

Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual method of accounting but he doesn’t keep any signifi

Prepare a Tax Basis Balance Sheet for the partnership on its formation at the beginning of 2012