Advise both charlie and shine homes about the fringe benefit

Assignment Help Accounting Basics
Reference no: EM131634905 , Length: word count:3000

Question -

Charlie is an employee of Shiny Homes Pty Ltd (Shiny Homes). He is a real estate agent. Shiny Homes also operates a separate business on landscaping to 'do up' houses before they are put up for sale.

From the period 1 July 2016 to 30 June 2017 the following events took place:

In 1 September 2016, Shiny Homes provided Charlie with a 4 wheel drive sedan value at $70,000. From 1 September 2016 to 31 March 217 the car travelled 80,000 km. He parked his car in his garage in the evenings. Before he went away for his Christmas holidays, the car was sent to be serviced and he could not use his car for 2 days. He estimated that 70% of the time he used the car was for business purposes and the other 30% of the time for private use. Charlie also maintained a log book for 12 weeks and the following information was recorded:

  • 50,000 km were work related
  • Petrol and oil per month - $2,000
  • Repairs and maintenance per month - $3,500
  • Registration per annum - $240
  • Insurance per annum - $960

Note: these expenses were incurred by Shine Homes.

In 1 February 2017, Charlie was involved in a minor car accident and he could not use the vehicle for 2 weeks (1st to 14th February 2017). This occurred a week before Charlie's wedding and Shine Homes decided to hire a car for that period at a cost of $1,000 to allow Charlie and his wife Deborah to go for their honeymoon trip to the Gold Coast. Shine Homes paid for their honeymoon accommodation which was worth $3,000.

During working hours Charlie parked his car at Secure Parking (an unrelated entity) and Shine Homes paid $200 per week.

Required  - Advise both Charlie and Shine Homes about the fringe benefit consequences of these events. You are required to compute the taxable benefit where necessary.

You must cite the relevant case law and legislation.

Rationale - This assessment task covers topics from week 1 to 9 and has been designed to ensure that you are engaging with the subject content on a regular basis. :

This assignment has been designed to assess your ability to

  • be able to identify and explain the rules of law relating to taxation law topics covered in the subject
  • be able demonstrate a capacity to engage in legal research
  • be able to use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution
  • be able to analyse legal rules so as to differentiate between possible outcomes to the legal issues arising from novel fact situations.

Students should be able to identify and apply legislation and case law to the issues identified as well as demonstrate the ability to analyse the issues fully and discuss the application of taxation principles.

Reference no: EM131634905

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Reviews

len1634905

9/9/2017 5:40:35 AM

Australian student, total 3000 words, need it as per the guidelines. In assessing your assignment the marker will expect you to: present an essay that is readable and coherent; use appropriate language, correct spelling and grammar; identify and analyse relevant issues; explain and apply relevant cases, rulings and legislation; reach a sound and well-reasoned conclusion; use appropriate referencing; and demonstrate time management skills. Your mark will depend upon the degree in which you demonstrate your understanding of the topics covered thus far, and the overall presentation of your advice to your client. For guidance, please refer to the section. “Presentation”. Students are required to answer a problem type questions in order to demonstrate: To meet this level you will achieve a cumulative mark of 85-100%. A mark in this range indicates that a student: Identification of relevant legal issues.

len1634905

9/9/2017 5:40:28 AM

Correctly identifies all legal issues and formulates them clearly with consideration of all links to relevant law, with no errors. Explanation of law and citation of relevant legal authority. Provides a complete explanation of the law, with no errors. Explains all relevant legal authority. Application of legal principles to the facts. Applies the law to the facts so as to address all issues with no errors. Argument discusses linkages between facts and the law and considers counter-arguments. Conclusion clearly draws together advice. Compliance with the Style Guide and overall structure. Uses Style Guide comprehensively, accurately and consistently. Uses ILAC model. Extremely well structured and organised, with one main argument per paragraph, supported by well-written supporting sentences. Written expression and editing Uses appropriate academic writing which is formal, impersonal and which contains no spelling, grammar and punctuation errors. Paper demonstrates careful proofreading.

len1634905

9/9/2017 5:40:20 AM

Presentation - Your answer should not exceed the 3,000 word limit, excluding the bibliography. The assignment must be typed in Times New Roman, 12 point font, 1.5 spaced and with at least a 2.5cm margin on each side. You must use APA referencing system. Case and statute names should be italicised. Please comply with the following style guide: Do not re-state the question. Use in-text referencing. Do not use footnotes. Names of statutes should be italicised, and followed by the jurisdiction not in italics, for example: Acts Interpretation Act 1901 (Cth). Note the abbreviation for ‘Commonwealth’ is ‘Cth’ not ‘Cwlth’. The names of the parties must be italicised, but the citation must not, for example: Smith v Jones (1967) 345 CLR 34.

len1634905

9/9/2017 5:40:14 AM

An in-text reference to a book should be structured as follows: (Latimer, 2010, p. 75). There is no need to put the author’s initial. Note the positioning of brackets, stops and commas. You use ‘pp.’ only if referring to more than one page. If you are referring to a book with more than one author, the in-text reference would be as follows: (Smith et al, 2002, p. 78). An in-text reference to the subject's Modules should be structured in brackets as per the following example - obviously you will alter the reference depending on the subject, year of study and Module number: (CSU LAW505 Modules, 2017, Topic 7). Do not start a new line simply because you are starting a new sentence.

len1634905

9/9/2017 5:40:08 AM

Be careful of apostrophes: director's = of a director, directors' = of many directors, directors = many directors. Also particularly prevalent is confusion between its (it possessive) and it's (contraction of "it is"). The following words always start with a capital letter: Commonwealth, State, Act, Bill, Regulation, Constitution, Parliament. Do not unnecessarily capitalise other words.10. Do not use terms such as can't, won't, don't and shouldn't, neither should one use "i.e." and "e.g." in formal writing. A sentence must always begin with a full word and a capital letter – so a sentence would start ‘Section 55 says…’, not ‘S 55 says…’ or ‘s 55 says…’ tart each paragraph on a new line, and leave a clear line gap after the preceding paragraph. You must put page numbers on your assignment.

len1634905

9/9/2017 5:39:59 AM

You must end your assignment with a bibliography that is divided into three separate parts, listing statutes, cases and books / articles / on-line Modules. A listing of a book in a bibliography should appear in accordance with the following format: Barkoczy, S (2017). Foundation of Taxation Law 2017, (10th edition), Oxford University Press. If listing a book with multiple authors, do so as follows: Sadiq, K, Coleman, C, Hanegbi, R, Jogarajan, S, Krever, R, Obst, W, and Ting, A (2017), Principles of Taxation Law 2017, (10th edition), Pymont: Thomson Reuters. When listing statutes at the end of your assignment you should conform to the format: Income Tax Assessment Act 1997 (Cth). List the statute only once – you do NOT list individual section numbers relied on. You should not list textbooks as the source of Acts – the Act itself is its own source.

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