HI5028 TAXATION T2, 2014 ASSIGNMENT 2 SOLUTIONs
T2, 2014 ASSIGNMENT 2 SOLUTIONS
Ascribable duration: Friday Week 10
This enactment is to be submitted by the ascribable duration in twain softrepresentation (Safeassign â€“ Bb) and severe representation.
The enactment is to be submitted in harmony with impost plan systematic in the Subject Quenchedline and Student
It is the calling of the student submitting the labor to determine that the labor is in reality his/her avow labor. Determine that when incorporating the labors of others into your acquiescence that it truly referable attributable attributable attributable attributable attributableorious.
Maximum marks: 20 (20%)
Enactment 1: You should endeavor twain cleverness to this enactment Referable attributable attributable attributable attributable attributablee: you should weld full sections of the multiform Acts/regulations where alienate.
Part 1: Case study
Periwinkle Pty Ltd (Periwinkle) is a bathtub fabricationr which sells bathtubs quickly to the social. On 1 May 2013, Periwinkle granted individual of its employees, Emma, with a car as Emma does a chance of travelling control labor purposes. However, Emma’s exercise of the car is referable attributable attributable attributable attributable attributable attributable unpopular to labor solely. Periwinkle alienationd the car on that duration control $33,000 (including GST).
Control the era 1 May 2013 to 31 March 2014, Emma travelled 10,000 kilometres in the car and incurred expenses of $550 (including GST) on less repairs that entertain been reimbursed by Periwinkle. The car was referable attributable attributable attributable attributable attributable attributable verificationd control 10 days when Emma was interstate and the car was parked at the airport and control another five days when the car was scheduled control annual repairs.
On 1 September 2013, Periwinkle granted Emma with a advance of $500,000 at an attention admonish of 4.45%. Emma verificationd $450,000 of the advance to alienation a idleness settlement and lent the cherishing $50,000 to her mate (attention unhindered) to alienation shares in Telstra. Attention on a advance to alienation secret effects is referable attributable attributable attributable attributable attributable attributable deductible suitableness attention on a advance to alienation pay-producing effects is deductible.
During the year, Emma alienationd a bathtub feignd by Periwinkle control $1300. The bathtub solely absorb Periwinkle $700 to fabrication and is sold to the unconcealed social control $2,600.
(a) Advise Periwinkle of its FBT consequences arising quenched of the over notification, including estimation of any FBT amenability, control the year end 31 March 2014. You may feign that Periwinkle would be entitled to input duty credits in bearing to any GSTinclusive acquisitions.
(b) How would your tally to (a) dispute if Emma verificationd the $50,000 to alienation the shares herself, instead of lend it to her mate?
( 12 Marks) Part 2: Question
An gather of the asset record of Alpha Pty Ltd (â€˜Alphaâ€™) control the 2012-13 pay year is as follows:
Asset Absorb Opening
Esteem Method Effective
Life Decline in Esteem control
This Era Closing
Computer 1,350 1,350 Diminishing
Esteem 3 years 450 900
Furniture 5,000 3,000 Prime Absorb 10 years 500 2,500
Cabinets 1,200 1,080 Prime Absorb 10 years 120 960
Full depreciable effects are control 100% transaction verification and Alpha verifications a low-esteem pool control full suitable effects. The closing esteem of the low-esteem pool at 30 June 2013 was $5,300. Alpha alienationd a printer on 5 June 2014 control $700.
Advise Alpha of the pay duty consequences arising quenched of the over notification control
the 2013-14 pay year. ( 8 Marks)