BACC3004: Tax Law - The Disco Biscuit Company Case Study - Accounting and Finance Assignment Help

Assignment Task:

Question 1 (10 marks)

During the income year ended 30 June 2019/20 Nicholas, a resident, received salary and wages income of $35,000, interest income of $3,000, an exempt compensation payment of $23,000, commission income of $4,000, a Living Away from Home Allowance (LAFHA) of $20,000, an Overtime Allowance $2,000 and a rental loss of $9,000. Assuming that he has PAYG (W) of $6,000. Ignore tax offsets.

Required: what is Nicholas tax payable / refund (Please show all workings)?

Question 2 (10 marks)

The Disco Biscuit Company is a resident company that owns and operates a car dealership. During the year, the company has provided the use of a car to a number of people. The details are shown below. For each of the below transactions, explain by referencing to legislation and case laws applicable whether the provision of the vehicle represents a fringe benefit. 

1. Mary, the wife of Damon who is a salesperson of the company, received a car to use.

2. Gabby operates the business of providing an advertising consulting services to clients. The Disco Biscuit Company gives Gabby the use of a Mercedes for her services provided to it instead of paying a fee for her service upon their mutual agreement. 

3. Nigel, a salesperson, receives the use of a Lexus, a luxury car.

4. Tristan, the managing director, is given the use of a Jaguar (car) instead of receiving a director’s fee.