Reference no: EM133051553

CLWM4100 Taxation Law - Kaplan Business School

Workshop - Superannuation fund taxation, GST and FBT

Pre - workshop questions

Question 1
Discuss different types of superannuation funds

Question 2
For GST purposes what are the key components of a taxable supply?

Question 3
CarSales Pty Ltd is a resident company that owns and operates a car dealership. During the year, the company has provided the use of a car to each of the following:
a) Damon, a salesperson, receives the use of a Lexus;
b) Damon's wife Kylie, who does not work at the dealership, receives the use of a Citroen;
c) Nigel, who the company will employ as an accountant as soon as he finishes his professional exams, is given the use of a Honda;
d) The dealership gives Gabby the use of a Mercedes. Gabby conducts business as an advertising consultant and has agreed to receive use of the car instead of charging Kamikaze a fee for her services;
e) Tristan, a former employee who left after 20 years of service with the company, is provided with the use of a Chrysler;

Required: Giving reasons, identify which of the above transactions represents a fringe benefit.

Workshop Questions Question 1
The ABC Superannuation Fund is a complying superannuation fund. The fund provided you with the following information related to 2020/21.

Receipts
• Contributions received from employer $119,000
• Contributions from members (deductions of $50,000 claimed) $96,000
• Interest received $19,000
• Receipts of fund transfer from another complying fund $70,000

Payments
• Income stream Benefits paid to members $40,000
• Transfer to other complying super fund $18,000
• Insurance premium - death and disability $11,000
• Administration costs $4,000
All of the above amounts related to members who have supplied their tax file number.

Required
Calculate the Fund's taxable income and tax payable for the 2020/21 tax year.

Question 2
Consider each of the following situations in relation to GST registration. Is each person required to be registered? If so, why?
1. Dean, a professional tuna fisherman, based in South Australia and whose annual turnover from sales of fresh tuna for export is expected to be $400,000;
2. Alan, a part time Uber and Ola driver, whose annual turnover from ride sharing is expected to be $40,000;
3. Foodsecure Ltd is a registered charity that provides fresh food and groceries at a reduced price to people in need. The annual turnover including donations is expected to be $140,000. All profits are passed back into the business;
4. Georgio is a part time gardener and also sells plants at the markets on the weekend. His annual turnover will be approximately $20,000 from part-time gardening and $35,000 from the sale of plants.

Question 3
Taj claimed an input tax credit of $500* on a creditable acquisition totalling $5,500 in the previous financial year . Following a dispute resolution procedure the consideration for the supply was reduced to $2,200.
What are the GST consequences for Taj?
* The GST component is calculated as 1/11th of $5,500.

Question 4
The Disco Biscuit Company provides their employees with the following benefits during the year ended 31 March 2022. The employer is registered for GST and able to claim input tax credits.
a) Gym membership of $1,540 (incl GST).
b) Medical costs (GST free) $4,800
c) Overseas travel (GST free) $5,000

Required:
Calculate FBT payable by Disco Biscuit Company for the year ended 31 March 2022

After workshop questions

Question 1

The ABC Superannuation Fund is a complying superannuation fund. The fund received the following contributions during 2020/21.
• Contributions from Michael Cooper for his employees $134,000

• Contributions from Nadia Gomez, a self-employer who is 35 years old and entitled to claim a deduction $25,000
• Contributions from Anthony Zhang on behalf of his wife Molly (who has no other income or superannuation) $17,000
All of the above amounts related to members who have supplied their tax file number.
Calculate assessable income for the Super fund for the 2020/21 tax year.

Question 2
The Aware Superannuation Fund (which is a complying fund) has operated for 5 years accepting contributions. The fund had the following receipts and payments for the current tax year 2020/21:

Receipts:
• Contributions paid by employers as required under Superannuation Guarantee legislation $90,000 (tax file numbers supplied except for $20,000 contributions)
• Salary Sacrifice contributions forwarded by employers $14,000
• Contributions received directly from self-employed members (these are deductible to the members) $8,000
• Proceeds from sale of investment property $70,000 (purchased 4 years ago for $40,000)
Payments:
• Fund admin costs $18,000
• Payment to retiring members of the fund $35,000
• PAYG instalments $21,000

Required: Calculate the taxable income and the tax payable of the fund for 2021. Clearly list all possible assessable income and all possible allowable deductions.

Attachment:- Superannuation fund taxation.rar