ACC301 Tax Law Assignment Sample

• Subject Code : ACC301
• University : Kings Own Institute My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Taxation Law

Case Study: Michael

Answer to Question- 1 :-

Assumptions :-

1. Interest rate on loan taken for buying the rental property is taken as 5.20% P.A.

2. Income from Capital Gains is taken as 5% of the total capital gains in the Total Assessable Income of an assessee (Kreiser, Butcher, & Jowitt, 2011).

3. All other expenditure incurred to earn the Income of the assessee is to be deducted from the total assessable income.

4. Bad debts relating to Current year shall be deducted in computing total assessable income.

5. Excess payment to a relative of $40000 (i.e., $50000-$10000) shall be added to income of the assessee (Liebman, 2011).

Answer to Question- 2 :-

Notes:-

1. At the time where GST can be claimed the value of the total Fringe Benefit Tax; total value of benefit shall be grossed by 2.0802.

The gross up value shall be multiplied by 47% (Rate of Fringe Benefit taxes).

2. At the time where GST cannot be claimed the value of the total Fringe Benefit Tax; total value of benefit shall be grossed by 1.8868.

The gross up value shall be multiplied by 47% (Rate of Fringe Benefit taxes (System. Et al. 2016).

Answer to Question- 3 :-

Notes :-

1. Michael’ had certain Assets which he sold on 30.06.2019 which were purchased on 01.12.1999 such as Antique, First Day Cover, Lounge (Seymour, 2019).

2. Michael’ had sold another property on 01.07.2018 purchased by him on 30.09.2010. Further there were brokerage expenses, Interest Expenditure and the Stamp duty expenses were to be deducted from the total sale value to compute the total Capital gains.

3. In the Asset Lounge the asset was sold at less than the purchase value resulting in the total capital loss (Arnold, Ault, & Cooper, 2019).

Answer to Question- 4 :-

Notes :-

1. All the taxes paid by Michael’ can be claimed as deduction while calculating the total deduction.

2. The Fringe Benefit Tax paid by the assesse can also be claimed as deduction.

3. The losses for the previous year can be claimed as deduction while computing Total Income of the assesse (McLaren, 2017).

4. The previous year capital gain losses shall be carry forwarded and can be claimed as deduction for the year ended 30.06.2019.

References

Kreiser, L., Butcher, B., & Jowitt, E. (2011). Toward a More Equitable Tax Treatment of Employee Fringe Benefits: the Australian Experience. Int'l Tax J., 23, 77.

Liebman, L. (2011). Too Much Information: Predictions of Employee Disease and Fringe Benefit System. U. Chi. Legal F., 57. Woellner, R., Barkoczy, S., Murphy, S., Evans, C., & Pinto, D. (2016). Australian Taxation Law 2016. OUP Catalogue.

Seymour, E. (2019). Taxation: strategies for financial planners. Financial Planning in Australia, 383-416.

Arnold, B. J., Ault, H. J., & Cooper, G. (Eds.). (2019). Comparative income taxation: a structural analysis. Kluwer Law International BV.

McLaren, J. (2017). The economic development of northern Australia: A critical review of the taxation benefits and incentives both past and present and the potential taxation options for the future. J. Australasian Tax Tchrs. Ass'n, 12, 1.

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