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Smith, who is a civil engineer, purchased a 30-hectare block of land in Australia in 1986 and used two hectares of it as a main residence. The part that was not main residence cost $600000. In March 2011, Smith decided to conduct the business of land development with respect to the 28hectares. From that date he was involved in the grading clearance, planning and financing of the development. On 1 March 2011, the land had a market value of $2 million. When the land is developed and subdivided Smith thinks he can sell it for a total of $10 million. Requirements:
a) Advise Smith as to the tax consequences of his actions.
b) Would you advice differ if Smith had purchased the land in 1980?
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Literature review
List the task regions in the Spiral model. Customer communication - In this region it is suggested to set up customer communication. Planning - All planning activities
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