Reference no: EM132787891

HI6028 Taxation Theory, Practice, and Law - Holmes Institute

Purpose:

This assignment is designed to assess your level of knowledge of the key topics covered in this unit

Learning Outcome 1: Demonstrate an understanding of the Australian income tax system, the concepts of income anddeductions, CGT, FBT, GST general anti-avoidance provisions and income tax administration.

Learning Outcome 2: Identify and critically analyse taxation issues.

Learning Outcome 3: Interpret the relevant taxation legislations and case law.

Learning Outcome 4: Apply taxation principles to real life problems.

Question 1

(Note this question is based on the Topic7Lecture: Fringe Benefits Tax)

GoodMatesPty Ltd loaned one of itsstaff, Munir, the amount of $5,000 (interest free) for one month. Due to personal life issues and financial hardship that Munir was suffering, it turned out that demanding the loan will endanger his health and will cause him not to be able to provide basic needs for his family. At the discretion of the board of directors, this loan was waived on compassionate reasons and Munir was informed.

Is the company required to pay any fringe benefit tax? Kindly use the templatebelow and discuss in detail.

Facts:

Rules and or cases:

Application:

Conclusion:

Question 2

(Note this question is from the Topic 8Lecture:Capital Gains Tax)

Ajay Ltdpurchased a depreciating asset with the value of $5,000 on 31 March 1989. On the same day, the company paid $50 to transfer the ownership. One year after, on 31 March 1990, this company spent an additional $1,500 for the asset functionality improvement.Later,on 31 March 1992, the company moved to a new place, and paid $200 to transfer this asset to the new location of business. Finally, the asset was sold in 2020 for $12,000(Ignore GST effect in all calculations of this question).

Calculate cost base, and capital gain (Loss), and capital gain tax, if any, considering Ajay decided to index (if applicable) and the relevant corporate tax rate is 30%.

(You can use your presentation slides for indexation, if required, and round to two decimals only, only use tables and no narration format is allowed, otherwise, the answer would not be marked).

Question 3

(Note this question is from the Topic 9Lecture:Goods & Services Tax)

A large company in Australia, called Alex Ltd, supplied $22,000 (GST Inclusive) worth of products to one of its local customers, Beta Pty Ltd,on 1 August 2019.Beta paid this bill in two equal instalments of $11,000on 10 May2020 and the second instalment on 15September 2020.

Discuss how each entity should account for GST. Alex Ltd is a GST-registered entity with ATO and accounts for GST on accrual basis, files BAS monthly and remains registered, while Beta is not registered for GST at all in both years.(No law sections or cases are required to be included in your answer, calculation of GST amount if any is required).

Attachment:- Tutorial Questions Assignment.rar