Hurry Up! Get 15% Please upload the order before 20th September, 2018. T&C applied Order now !
Get a callback
review
Back to Samples

Australian Tax Case Study on Peter and Carla Barton

Analysis

As per the relevance done to the case study, the Australia law is based on handling the Income Tax Assessment Act 1997 which is based on the handling of the rate of taxes. For this, there is a need to focus on the different arguments which are important to properly define about the capital returns as well as the capital gains that have been holding a reliable asset value. This is when one is able to get the chance to sell the house with the major gain that has been accrued from the selling is the capital gaining. (Devereuz et al., 2015).[1]

In Australia, it has been seen that there are different jurisdictions which are based on handling the tax of the capital gains for the different reasons. Hence, to match with then, there is a need to focus on the deterring risks with the thing with unhealthy economy range. There have been gains from the company shares with the trust that it will be able to set the companies being taxed for the level of the corporate. Hence, there have been critics for this with the less taxation who includes that there is a possibility of earning more with the less paying of the tax.

Hence, in regard to this, there is a need to focus on the different transactions, where we need to focus on how Peter Barton was able to engage himself with the different transactions that have been completely important for the assets to be set. (Stiglitz et al., 2015). This has been important for the realisation of the taxation as well as the capital gain tax to work on the sales as well as the legal assets. Considering that there have been improvements which can be done based on the computation and the calculation of the net gain capital cost, then there is a need to set up the Australian law and the other regulations for the governing patterns which is based on the Income Tax Assessment Act of 1997. [2]

There have been including of the certain methods and the calculations where there have been transactions and the sales mainly in the month of the August. Hence, according to the analysis, there is a need to focus on how the purchase is able to set and involve towards the development of the stamp duty for the proper transfer with the acquisitions which are done. The additional transactionis considered with the enhancement where Peter Barton has been able to visit home for Christmas holiday with profit from the company. (Baylock et al., 2015).

With the considerations of the case study, there is a need to focus on how to handle the profit which has been incurred mainly due to the sale though the website and salary. Hence, for this, there is a proper analysis which is based on the following steps analysis:

Hence, with this, there has been a sales cost, we have:

So, for this, there is a need to check that the final cost that has been set for the acquisition to sell the product is $151,600.

To incur the incidental costs for Peter Barton, there is a need to calculate the legal fees which can be calculated as follows:

Hence,

And,

With this, a proper investment cost of the site on the property:

Hence, with this, there is a need to properly consider about the calculations with the cost where the capital gain has been calculated as:

So, the entire salary of the gross capital gain has been of Peter Barton which is $608,392.

With this, there has been a proper gain of the income which is easily calculated through the set with the carrying forward of the loss along with the analysis of the capital gain from the gross. (Auerbach et al., 2015).

We know,

The calculation that has been done for the capital gain are mainly through the using 102-5 ITAA 97 methodology.

Hence, there has been certain discounted method which needs to be included for the proper set of the calculations. These have been defined people using the below calculations.

Using discounted method, the capital gain would be:

Now, the net gain, with the usage of the discounted method could be calculated for the discount that has been at the 50% and removal of carry forward loss:

 

Hence,

Hence, with this, there has been calculations of the net capital gain which has been done on the methodology using the section 102-5 ITAA 97.

With this, there is a proper analysis of how to handle the net assets and the capital gain which is able to properly calculate the value through the indexation or the discounting method. (Adda et al., 2015).[3]

When the loss arises from the sale of the antique vase, there has been a carrying of the cost which is found in the forward direction. It is related to the offsets which are set with the collectable gains. The house has been disposed under ordinary income. Hence, the loss is for the antique vase is considered on the ordinary gain where there has been no major consideration for it.

Hence, under the FBTAA actions, there have been a proper description of the different structure set which includes:

Hence, with the FBT calculations in the company, there is a need to focus on how there have been provisions which are set for:

a.       The properly handling of the car setup with the qualifications which are mainly for the different sets of the FBT procedures. This works on the providing of the proper qualifications as well the company private use. (Liu et al., 2015).

b.      There have been methods which are set to evaluate about the different use which has been absent in the calculations. Hence, for this, it is recommended to evaluate about the usage of the methods related to the statutory formula basis which can evaluate the following value under:

With this, certain considerations have been set for the evaluation in the time of 15days and the paid leave of 8 weeks. The calculations are mainly related to the paid leave. This is for the entire year where there has been no major use of the private charges. Hence, with the zero contribution of the recipient, there has been a reimbursement which includes the expense along with a focus on leave salary payment.

Hence, the calculations for the regular costs are $2600.

With this, there has been a complete reduction that has been $1300 which is depending upon the financial year along with the contributions which are made that are $650.

Hence, the house FBT is of the s 62 which includes the FBTAA for the handling of the taxation parts with 0 value. So, there have been calculations which are based on:

a.       The site which is type 1 for the proper evaluation of the amount with the GST. The amount that has been included is based on the financial supply along with the GST amount. (De Menil et al, 2016).

b.      For the type 2 paid leave, there is a need to calculate the taxable value either nil or there is certain salary FBT depending upon the attached value.

Thus, the fringe benefit taxable amount as:

Thus, the fringe benefits tax liability as:

With this, Barton, has the liability with the FBT to focus on the Bartonbusiness with the liability $10,777 which has been discussed above.

 


 

Conclusion

There have been set procedures which include the proper loans that are imposed on the benefits. It is important to check on how there have been financial amounts which are found to be completely deductible. With this, there has been including of the amount that has been considering for the salary and website profits. (Kawano et al., 2016). It mainly includes the income production with the proper settlement of the financial options that has been for the benefit of the amount. This is mainly related to the set pattern where:

The above is based on handling the loan fringe value which includes the otherwise deductible rule under the FBTAA section 19.


 

References

Devereux, M.P., Maffini, G. and Xing, J., 2015. Corporate tax incentives and capital structure: empirical evidence from UK tax returns (No. 1507).

Stiglitz, J.E. and Rosengard, J.K., 2015. Economics of the Public Sector: Fourth International Student Edition. WW Norton & Company.

Blaylock, B.S., Gaertner, F.B. and Shevlin, T.J., 2015. Book-Tax Conformity and Capital Structure. Available at SSRN 2437196.

Auerbach, A.J. and Hassett, K., 2015. Capital taxation in the twenty-first century. The American Economic Review, 105(5), pp.38-42.

Adda, J., Dustmann, C. and Görlach, J.S., 2015. Migrant wages, human capital accumulation and return migration. Unpublished manuscript.

Petchey, J., 2015. Environmental standards in a large open economy. Journal of Public Economic Theory, 17(3), pp.461-467.

Gomme, P., Ravikumar, B. and Rupert, P., 2015. Secular Stagnation and Returns on Capital. Federal Reserve Bank of St. Louis Economic Synopses, (19).

Liu, Y. and Lu, Y., 2015. The economic impact of different carbon tax revenue recycling schemes in China: A model-based scenario analysis. Applied Energy, 141, pp.96-105.

De Menil, G., Murtin, F., Sheshinski, E. and Yokossi, T., 2016. A rational, economic model of paygo tax rates. European Economic Review, 89, pp.55-72.

Kawano, L. and LaLumia, S., 2016. How Income Changes During Unemployment: Evidence from Tax Return Data. Journal of Human Resources.

Kenyon, C. and Green, A., 2015. Warehousing credit risk: pricing, capital and tax. Risk, p.70.



[1]Devereux, M.P., Maffini, G. and Xing, J., 2015. Corporate tax incentives and capital structure: empirical evidence from UK tax returns (No. 1507).

[2]Stiglitz, J.E. and Rosengard, J.K., 2015. Economics of the Public Sector: Fourth International Student Edition. WW Norton & Company.

 

[3]Adda, J., Dustmann, C. and Görlach, J.S., 2015. Migrant wages, human capital accumulation and return migration. Unpublished manuscript.