ACCG924 : Gross Income from Patient Consultations - Taxation Assignment Help

Assignment Task :

QUESTION 1  

Answer both Parts A and B 

PART A  

Explain which CGT event happens, and when the event happens, for the following taxpayers. You are  required to explain your answers.  

1. Jeff 

In order to build a freeway, a state government compulsorily acquired Jeff’s land. While Jeff did not  receive compensation for the compulsory acquisition of the land until 20 July 2019, the government took  possession of the land on 10 June 2019, conducted a physical survey of the land on 11 June 2019 and  became its owner on 19 July 2019.  

2. Mary 

On 1 May 2018, Jenny entered into a contract which gave her the use of a beach house owned by  Mary for six months prior to making her decision to purchase the property. On 1 November 2018, Jenny signed the contract to actually purchase the house for $500,000.  

3. Joe 

On 1 July 2018, Joe entered into a contract for the sale of his business to Freddie. Under the further  condition that Joe would not operate a similar business within 15 kilometres for three years, he would  receive an additional sum of $180,000 over the basic consideration for his business. On 1 August 2018,  he accepted this ‘restrictive covenant’ and received $180,000 from Freddie.  

4. Rachel 

On 10 March 2016, Rachel inherited 10 hectares of land upon the death of her grandmother. The land  had been acquired for farming purposes on 2 March 1982 at a cost of $60,000. At the time of her  grandmother’s death the land was estimated to be worth $1,000,000. On 1 April 2019, Rachel was  approached by a real estate agent asking whether she would like to sell the land for $1,500,000. On 1  June 2019, Rachel agreed to sell the land and entered into a contract. The contract is settled on 1  September 2019. 

PART B 

James Cox, a doctor who runs his own medical practice in Chatswood. He also operates a coffee shop business next door. He provides you with the following information from his accounting records for the  period 1 April to 30 June 2019:  

INCOME  

a) Gross income from patient consultations $220,000

b) Gross income from coffee shop $165,000

c) Interest income $5,200

d) Profit from the sale of shares $3,300 

EXPENSES 

e) Wages paid to nurse and reception staff $66,000

f) Use of fresh fruit and vegetables for the coffee shop $44,000

g) Accounting fees relating to the medical practice $3,300

h) Accounting fees relating to the coffee shop $2,200

i) Parking fines relating to the medical practice $650

j) Telephone and Internet relating to the medical practice $1,200

k) Telephone and Internet relating to the coffee shop $1,100

l) Rental expenses relating to the coffee shop $33,000 

REQUIRED  

Assuming the above figures for each of the items (a) to (l) are GST inclusive (where  applicable) for the two combined business activities: 

i. EXPLAIN AND CALCULATE the GST payable on supplies made and GST  input tax credit claimable;  

ii. DETERMINE net GST payable or refundable.

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