Identify and critically analyse taxation issues

Assignment Help Taxation

Reference no: EM132376052 , Length: word count : 2000

Assignment

You are required to follow the instructions by your lecturer to confirm any relevant information. You also need to follow any relevant announcement on Blackboard to confirm the due date and time of the assignment.

The individual assignment will assess students on the following learning outcomes:

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

2. Identify and critically analyse taxation issues.

3. Interpret the relevant taxation legislations and case law.

4. Apply taxation principles to real life problems.

QUESTION 1-

The City Sky Co is a property investment and development company. Recently the company purchased a vacant piece of land south of Brisbane on which it is planning to build 15 apartments to sell. The City Sky Co has engaged the services of the local lawyer, Maurice Blackburn, to provide the legal services required for the development for $33,000. Maurice Blackburn runs an established sole trader business and turns over revenue of $300.000 per year.

Advise The City Sky Co of the input tax credit entitlements that they may be entitled to. Assume that The City Sky Co is registered for GST purposes.

QUESTION 2 -

Emma has provided to you a listing of the transactions she has undertaken throughout the financial year to assist you in completing her 2015 income tax return.

Sale of a block of land for $1,000,000: Emma purchased the land as an investment in 1991. The purchase price was $250,000. plus $5,000 in stamp duty, $10,000 in legal fees. To fund the purchase, she took out a loan on which she paid interest totalling $32,000. During the period of ownership her council rates, water rates and insurance totalled $22,000.

In January 2005 a dispute occurred with a neighbour over the use of the land and legal fees incurred amounted to $5,000 in resolving this dispute. Before putting the property on the market $27,500 was spent to remove a number of large dangerous pine trees that were on the land. Advertising, legal fees and agent's fees on the sale of the land were $25,000.

Sale of Emma's 1000 shares in Rio Tinto for $50.85 per share: Emma paid brokerage fee of 2% on the sale. Emma initially purchased the shares for $3.5 per share in 1982. Sale of a stamp collection Emma had purchased, from a private collector, in January 2015 for $60,000: Emma sold the collection at auction for $50,000. Auction fees totalled $5,000 for the sale. Sale of a grand piano for $30,000: It was initially bought for $80,000 in 2000.

Advise Emma of the capital gain tax (CGT) consequences of her transitions. Ignore indexation. Your answer must include references to relevant tax law and or cases.

Reference no: EM132376052

Questions Cloud

Quality management and productivity : What is a research topic that is relevant to quality management and productivity?

Generic low price strategy for their goods or services : Many times, businesses will select the generic low price strategy for their goods or services.

Implementing a big data solution : Big data is not an isolated solution. Implementing a big data solution requires that the technical infrastructure (h/w, s/w, network) be in place

What type of conflict is occurring in this case : What type of conflict is occurring in this case, and what conflict management style would you, as the manager use? Justify your choice.

Identify and critically analyse taxation issues : HI6028 -Taxation Theory and Practice and Law-Holmes Institute- Australia- Advise The City Sky Co of the input tax credit entitlements that they may be entitled

Describe how a manager would approach ethical decisions : Describe how a manager would approach ethical decisions according to each of the three views on ethics.

Write communication plan for your health care organization : You are to develop communication strategies and write communication plan for your health care organization. Types of internal and external communication network

What is floating rate preferred stock : FIN-650: Managerial Finance - Grand Canyon University - How does preferred stock differ from both common equity and debt?

Prepare audio recording addressed to your client : MGT5PMT Project Management Assessment - 'When things go wrongs' presentation, La Trobe University, Australia

Reviews

len2376052

9/25/2019 12:27:10 AM

• All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page. • The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. • Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style.

Write a Review

Required(*) Message

User Account

All Pages