LAW5230 Taxation Law For ABC Private Limited Assignment

Describe about the Taxation Law For ABC Private Limited.

Answer:

There are various requirements to be considered for calculating the liabilities and FBT. The following assumptions must be considered by the company for calculating the tax liability of Alan:

The salaries and wages are not a part of the liabilities and hence the amount of $300,000 is not to be considered.
The personal expenses like mobile phone expenses and fees of the children paid by the company will not form the part of tax liability.
The GST must be included and the gross rate multiplication method must be applied for the inclusion in the mobile purchased.
The spending by the company towards the employee for the purposes of entertainment requires validation. Moreover, the computation of the total spending is complex and the same must not be included in the tax liability. 

Total Accountability of the ABC Private Limited: 

Total Revised Accountability of the ABC Private Limited: 

The spending done towards the client is not complex as in cases of the employees and thus, the same must not be exempted from the liabilities of taxes like the employees. Therefore, the same must be taxed without any room for deductions (Ato.gov.au. 2016). 

The statutory proceeds as per the ITAA Act include the following:

• Credit recognition
• Retirement and termination payments
• Receipts of royalty
• Capital gains
• Bonus on Insurances

The ordinary proceeds as per the ITAA Act include the following:

• Wages
• Salaries and other remunerations
• Sale of shares, securities
• Interest on fixed deposits, rental incomes and dividends

The building acquired by Peta was done before two years and he had the motive of dwelling along with attaining revenues from the old court of tennis attached to the building. Thus, as per the laws the same will be the part of the assessable income of the individual.

Moreover, a repair and renovation process was carried for the increment in the total revenues. It will be considered as the ordinary incomes. While, in case of the selling off the whole property by Peta, the gains will be considered as the statutory incomes with an exemption amount of 50% on the total sales (Adams & Moon, 2013). 

Reference List

Adams, V. M., & Moon, K. (2013). Security and equity of conservation covenants: contradictions of private protected area policies in Australia. Land Use Policy, 30(1), 114-119.

Ato.gov.au. (2016). Fringe benefits tax (FBT) | Australian Taxation Office. [online] Available at: https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/ [Accessed 20 Sep 2016].

Belinga, V., Benedek, M. D., De Mooij, R. A., & Norregaard, M. J. (2014). Tax buoyancy in OECD countries (No. 14-110). International Monetary Fund.

Blöchliger, H. (2015). Reforming the Tax on Immovable Property.

Blöchliger, H., & Nettley, M. (2015). Sub-central tax autonomy: 2011 update. OECD Working Papers on Fiscal Federalism, (20), 0_1.

Chapman, A. J., McLellan, B., & Tezuka, T. (2016). Residential solar PV policy: An analysis of impacts, successes and failures in the Australian case. Renewable Energy, 86, 1265-1279.

Kelly, J. F., Hunter, J., Harrison, C., & Donegan, P. (2013). Renovating housing policy. Grattan Institute, Melbourne.

Slack, E., & Bird, R. M. (2014). The political economy of property tax reform. OECD Working Papers on Fiscal Federalism, (18), 0_1.