$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

LAW505 Taxation

tag 0 Download10 Pages / 2,277 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Part 1

On 1 July 2016 Frank Lloyd commenced business as an architect. He operated as a sole proprietor from a converted garage at the rear of his residence. Much of his work consisted of preparing building designs and specifications for local council building permits but he quickly gained a reputation for quality drawings prepared within tight timeframes. By the end of 2016/17 he had a small client base of local builders and private referrals and billings (fees) of $75,000.

During the year (2016/17) Frank submitted a design as part of a national competition for

‘The Citadel’, the centrepiece of an ambitious urban redevelopment. His visionary design and revolutionary use of local materials left the judging panel speechless with admiration and, to national acclaim, he was awarded the prize and commissioned to build the structure. Immediately he borrowed $1 million, rented premises in Main Terrace, acquired state of the art equipment and employed six draughtsmen and two administrative staff. During 2017/18 his billings were $2.5 million.

Required 1:

Should Frank return on a cash or accrual basis in 2016/17 and 2017/18?

You must refer to appropriate case law. Your answer must include (but should not be limited to) a discussion of the following:

  • What factors affect the choice of a cash or accrual basis?
  • Does Frank have a choice of the basis he adopts?
  • Does the Commissioner of Taxation have a right to insist on a particular basis?
  • Should Frank’s basis be the same in both years?
  • Given the present availability of accounting software packages, in your view, is the traditional criteria for the cash/accrual distinction still relevant?

Part 2

Ruby Engineering Pty Ltd [Ruby] was incorporated in 1990 and produced engine components used in the Australian car industry. In 2016 the business and company assets were sold to Diamond Ltd. Under the terms of the agreement, Ruby remained liable for any claims arising before 2016. The company used the funds to invest in real estate and shares.

During the year ended 30 June 2018 Ruby incurred the following expenses:

Required 2:

Advise the directors of Ruby Pty Ltd of the tax deductibility of the above amounts. You must make reference to appropriate authorities and legislation.

  • Ruby has owned and rented a residential property since 2008. Rental income for the current year is $35,000. During the year the company replaced the old kitchen fittings, including cupboards that had deteriorated through water damage and wear and tear. The new cupboards were of the same type as the old ones and the kitchen layout was not altered substantially. The cost was $8,500.

  • In another of the rental properties a visitor to the tenants slipped on the steps and sustained injuries requiring medical attention. She claims one of the steps was loose and commenced legal proceedings against the partnership alleging her injuries were caused by the poor condition of the building. Ruby incurred legal expenses to date of $7,000 and the action has not been settled at 30 June.

  • In March 2015 the company owned sold a batch of parts that were subsequently found to be defective. The purchaser, an Australian car manufacturer lodged a claim for damages in the Federal Court. The claim was settled in November 2017 and the company paid an amount of $750,000 to the car manufacturer.

  • The directors of Ruby were concerned about the claim in (c) and the effect it had on the year’s reported profit. They resolved to set aside a small amount of funds annually to meet any future claims. Accordingly, an amount of $100,000 was set aside in a provision in the accounts for the year ended 30 June.

  • In August 2017 the directors of Ruby decided to investigate the possibility of re-entering the car parts manufacturing industry using a new type of alloy. An amount of $220,000 was paid to consultants investigating the proposal but, due to uncertainty in the motor vehicle industry, the directors decided not to proceed at the time.

Required 2

Advise the partners and directors of Ruby Pty Ltd of the tax deductibility of the above amounts. You must make reference to appropriate authorities and legislation.

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 10 pages, 1 USD Per Page

Cite This Work

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

My Assignment Help. (2021). Taxation. Retrieved from https://myassignmenthelp.com/free-samples/law505-taxation/goods-and-services-tax.html.

My Assignment Help (2021) Taxation [Online]. Available from: https://myassignmenthelp.com/free-samples/law505-taxation/goods-and-services-tax.html
[Accessed 11 April 2021].

My Assignment Help. 'Taxation' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/law505-taxation/goods-and-services-tax.html> accessed 11 April 2021.

My Assignment Help. Taxation [Internet]. My Assignment Help. 2021 [cited 11 April 2021]. Available from: https://myassignmenthelp.com/free-samples/law505-taxation/goods-and-services-tax.html.


Have you ever considered availing online essay writing service to get the best support on argumentative essay topics? If your answer is yes, then let us tell you that MyAssignmenthelp.com tops the rank when it comes to online academic writing help. If you ever face any trouble regarding argumentative essay writing, contact us. Our team of 5000+ academic writers is always active to help you with all kinds of argumentative topics. Moreover, you can easily check essay samples our writers to understand the basics of argumentative writing.

Latest Management Samples

COM00207 Communication In Organisations

Download : 0 | Pages : 5

Answer: Communication is the passing of information from a source (sender) to destination (receiver) who receives the message and decodes it to get the meaning of the message (Khalighi and Uysal 2014, pp.2231). Communication is a necessity in our lives as life would be meaningless without communication.in our daily lives, communication is all around us. It may be in the form of what we hear, see or even what we depict. Communication takes vari...

Read More arrow

BCOM 301 Business Communications

Download : 0 | Pages : 3

Answer: Social media has several advantages and disadvantages that are faced by companies when they try to approach any new country. The social media usage and access is different in every country and every organisation must have a good understanding of the factors which create an impact on the social media usage. China and Mexico have different exposures to social media which makes the approach of the company different. China has no exposure ...

Read More arrow

SPT 501 Research Methods In Sport Management

Download : 0 | Pages : 3

Answer Ethical Considerations There needs to be proper ethical considerations when conducting any studies that involve human subjects. The involvement of human subjects in studies calls for much ethical considerations to ensure that there are no issues that may arise from the study. All human subjects in any study have to be handled with much care to ensure that the research is a success and that it does not bring about ethical issues. Much e...

Read More arrow

PY3002 Biology

Download : 0 | Pages : 4

Answer: Introduction The animal cell is the smallest unit of an organism. Animals have different types of cell structures and cell components. These cell structures are observed and studied using cell biology techniques. These techniques include microscope, staining techniques and Cell fractionation (Gennis, 2013, p6). A microscope varies from each other with different sizes and it’s appropriate. The two common microscopes utilized in ...

Read More arrow

BIT355 Business Intelligence Assignment

Download : 0 | Pages : 4

Answer: Introduction This report represents seven case studies, to understand the business value with the help of BI (Business Intelligence) tools, methods and techniques. All the seven case studies will be analyzed and the types of problems and evaluated decision will be summarized; how the BI tool addressed the business issues will be discussed and the used BI tool, methods and techniques to add value to the business will be ident...

Read More arrow
Next

Save Time & improve Grade

Just share requirement and get customized Solution.

watch
question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

Add File

Error goes here

1,641,209

Orders

4.9/5

Overall Rating

5,120

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

610 Order Completed

100% Response Time

Cheryl Zhao

PhD in Statistics

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1896 Order Completed

95% Response Time

Herman Berens

MSc in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

529 Order Completed

95% Response Time

Ivan Blank

PhD in Functional Human Biology

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

755 Order Completed

95% Response Time

Douglas Cowley

Masters in Finance with Specialization in Audit

Wellington, New Zealand

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

Omg they’re doing very good I got 100 from 100 ???? thank you so much for your help you saved me

flag

User Id: 534789 - 10 Apr 2021

Australia

student rating student rating student rating student rating student rating

the writer did a good job but live chat is not working for my exam, so it waste some time

flag

User Id: 663960 - 10 Apr 2021

Australia

student rating student rating student rating student rating student rating

This solutions has been escalated & reworked 4 time, and has cause me lots of delays and time to submitting my final work to my professor. I hope this does not happen again. I am your regular and loyal customer, please do not do this again. I am ...

flag

User Id: 333156 - 10 Apr 2021

Australia

student rating student rating student rating student rating student rating

Excellent work ..I will keep in touch with my future work. Really appreciate all your effort . So far so good. thanks again.

flag

User Id: 573225 - 10 Apr 2021

Australia

student rating student rating student rating student rating student rating

Order on the go!

Say hello to our new app

callback request mobile
Have any Query?