fb
$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

ACC304-Tax Implication Case Study

tag 0 Download8 Pages / 1,975 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Questions

Part 1

Starting a new life, Elwood arrived in Australia on 1 July 2017 with his wife and two children. Elwood and his family have been transferred to Australia for a minimum of 3-years. Elwood likes the low interest environment and purchases a home. He moves in immediately. He registers the telephone and electricity in his name. On 1 January 2018, he adds a new kitchen to the home at a cost of $20,000.
 
Inda, his wife started part-time employment as a sales manager. The children settle happily into the local school. Elwood rents out their former home in the United States and the rent is paid into an American account he can access from Australia. Elwood joins the local gym and becomes a member of the local Chess club. He attends regular meeting and is appointed President after a short period of time.
 
Inda is asked to work from home 2 days per week as the company is closing their Brisbane office. The company can no longer afford the commercial rent. Inda agrees reluctantly as she loved the work atmosphere.
 
Required
 
Elwood and Inda request that you provide them with tax advice in relation to their residency for taxation purposes. Students should quote legislation, appropriate rulings and cases. Marks will be awarded for the format of your business letter and appropriate use of language.

Part 2A Tax Return Information

Jake Smith is an Australian resident and also one of your clients. Jake has the following events during the year.
1. During the entire 2018 income year, Jake worked for MD & A Architects. Jake was provided with his PAYG Payment Summary for the period 1 July 2017 to 30 June 2018. Gross salary was $86,000. Payg tax withheld was $19,820.
 
2. Jake uses his car for work. Jake was reimbursed for 6,000 kilometers travelled during the year at 75 cents per kilometer. PAYG withholding of $1,500 was deducted during the year.
 
3. Jake earns interest of $100 during the year (gross). Jake did not provide the bank with his tax file number.
 
4. Jake received an unfranked divided of $3,500 on 18 June 2018. Jake participated in a dividend reinvestment scheme so that he received an additional 198 shares in the company.
 
5. Jake purchased 1,000 ANZ bank share on 1 March 2015 at $22 each. Brokerage costs on purchase were $50. Jake sold 500 ANZ bank shares on 1 June 2018 for $24 each. Brokerage costs on sale were $55.
 
6. On 12 May 2018, Jake sold his “cricket bat” collection. This consisted of 5 cricket bats that were signed by famous people. The great “Sahin Tendulkar” has signed one of the bats. Ricky pointing had signed one of the bats which was worth considerably less than  3 the bat signed by Tendulkar. Jake purchased the bats between 1999 and 2004 for a total cost of $2,600. He sells the entire collection for $900.
 
7. Jake failed to keep a log book but wishes to claim his Mazda 3 motor car if possible. Jake’s diary notes indicate he travelled 7,420 kilometers. Total car expenses including depreciation are $6,200. He estimates (has a guess) that his business percentage is 95 percent. Jake does not have a second motor car.
 
8. Jake owns a mobile phone which he uses for work. His mobile telephone call costs for the 2018 income year totalled $1,400. Jake estimates that 60% of these calls were workrelated. Jake failed to keep his receipts and can’t provide any material documentation.
 
9. On 1 May 2018, Jake paid the invoice which he received from his previous tax agent for the preparation and lodgement of his income tax return for last year. The tax agent's fee was $400.
 
10. Jake is not married and does not have health cover.
 
Advise Jake as to the tax implications of each of these 10 items and the impact it will have on his tax return. Students should quote sections of law where appropriate.

Part 2B

Jake while talking to a friend (Max) at a party is informed about a topic called “negative gearing”. Tax advantages were discussed so Jake is seeking your advice. He was also told about potential changes should there be a change in Government. In your own words, explain “negative gearing” to Jake and the potential changes that may occur. In your own words, students should discuss the potential tax benefits for someone earning $100 k per year. 
 
 
Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 8 pages, 1 USD Per Page

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2020). ACC304-Tax Implication Case Study. Retrieved from https://myassignmenthelp.com/free-samples/acc304-tax-implication-case-study.

"ACC304-Tax Implication Case Study." My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/acc304-tax-implication-case-study.

My Assignment Help (2020) ACC304-Tax Implication Case Study [Online]. Available from: https://myassignmenthelp.com/free-samples/acc304-tax-implication-case-study
[Accessed 23 October 2021].

My Assignment Help. 'ACC304-Tax Implication Case Study' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/acc304-tax-implication-case-study> accessed 23 October 2021.

My Assignment Help. ACC304-Tax Implication Case Study [Internet]. My Assignment Help. 2020 [cited 23 October 2021]. Available from: https://myassignmenthelp.com/free-samples/acc304-tax-implication-case-study.


Coming up with interesting research topics is a challenging task. If you are looking to save money for authentic assistance, MyAssignmenthelp.com is the place where you will get answers for topics like Bill Gates Leadership style, Starbucks social responsibility and more. Another daunting aspect, where our experts shine, is providing accurate citations. If you have no idea how to cite a research paper, do not hesitate to avail our service. To provide swift service, our writers frequently use referencing tools to ensure accurate citations on the chosen citation style. Even if you need assistance in the 11th hour, you know where to find us.

Latest Tax Samples

HA3042 Taxation Law

Download : 0 | Pages : 8

Answers: 1. Issue As per the highlighted details of the case, a renowned mountaineer Hilary has been given the following payments. Proceeds for selling the copyrights associated with the story amounting to $ 10,0000 Proceeds for selling the manuscript associated with the story amounting to $ 5,000 Proceeds for selling the photographs clicked on expeditions amounting to $ 2,000 The payments above need to be analysed with relation to th...

Read More arrow

HA3042 Taxation Law

Download : 0 | Pages : 8

Answers: Question 1 Under Section 8-1 of Income Tax Assessment Act 1997: The cost of moving machinery to a new site will be allowed as deduction because it has been incurred while producing or gaining the assessable income. The cost of revaluing assets to effect insurance cover will not be allowed as a deduction because it has been incurred while producing or gaining the exempt income or non-assessable income (Tran-Nam & Evans, 2012)....

Read More arrow Tags: Australia Fairfield Management Safty  University of New South Wales 

ACFI3004 Taxation

Download : 0 | Pages : 6

Answers: Answer to Question 1: Answer to Question 1a: In order to ascertain the “Fringe Benefits Tax (FBT) liability” of ABC Private Limited from the perspective of Alan, it is crucial to undertake the below-stated assumptions: Salaries and wages: FBT does not take into account the salaries and wages that are paid to the staffs working in an organisation (Barkoczy 2016). Therefore, for calculating the FBT liability, the salary ...

Read More arrow

LAWS6016 Taxation Law

Download : 0 | Pages : 2

Answer: Introduction: According to the case study, Peta mainly bought the house two years ago, where it holds two old tennis courts. The intention of Peta was mainly to reside in the houses, while generating income from nearby tennis courts. Nevertheless, later in some point Peta sold the tennis courts for $600,000, which is mainly termed as the assessable income. However, the overall motive of Peta was to reside in the property and earn from t...

Read More arrow Tags: Australia Hurstville Humanities principlesof finacial markets University of New South Wales 

LAWS19033 Taxation Law And Practice

Download : 0 | Pages : 7

Answers Part A 1. The inspector general for the taxation is an independent officer for the statutory office who recognizes the concerns related to the law management. Generally, they are concerned regarding the management issues that are not in favour for managing the administration of good tax. The inspector general provides an independent suggestion to the government officials. 2. The following legislation governs the authority of the taxati...

Read More arrow Tags: Australia Tullamarine Management Safty  University of New South Wales Managemnt 
Next

5% Cashback

On APP - grab it while it lasts!

Download app now

*Offer eligible for first 3 orders ordered through app!

ribbon
callback request mobile
Have any Query?