FBT Calculation - Principles and Concepts - Taxation Assignment Help

Assignment Task :

QUESTION 1 – FBT Calculation 
Lucy is the Director of Clothes r Us Pty Ltd (CRU), a private company which is an importer and wholesale supplier of children’s clothes to independent retailers in the
Sydney region. Lucy owns 90% of the shares issued in CRU.
On 1 May 2019, CRU leased a new car costing $85,000 (GST inclusive). The car has a fuel consumption that does not exceed 7 litres per 100 kilometres. Total lease
payments in the first year are $3,200.
The car was garaged at Lucy’s house most nights as there was no covered and secure parking space at CRU’s offices in the city.
The particulars for the year regarding the car and for which invoices are retained, including a log book, include:

• Stamp duty $250
• Registration & Insurance $1100
• Petrol and oil $1,500
• Repairs & Maintenance $800
• Total kilometres travelled (as per log book) 28,000 kms
• Business kilometres travelled 16,800 kms
• Lucy’s contribution for petrol and oil $1,500

Lucy uses the car to travel from home to work in the mornings, and sometimes uses the car during the day to travel to meet with wholesale customers and market the
new range of clothes being imported by CRU. Otherwise, the car is usually garaged at a parking station near CRU’s offices. Lucy pays the parking fee of $20 a day and is reimbursed the cost by CRU. The parking fee is ordinarily a deductible business expense.
Required: Advise about the fringe benefits tax liability for the current FBT tax year. Your answer should show relevant calculations and be clearly supported by
references to relevant legislation, case law or tax rulings.

QUESTION 2 – Principles and Concepts 
Tony and his wife Carmen Galea migrated to Australia from Malta in 1965. As Tony had extensive experience in farming the couple quickly acquired a large land holding
in Western Sydney in a town called Blacktown for $18,000. Tony had come from a family who strongly encouraged investment in land. Tony and his family believed that due to the finite supply of land that it would be a good investment and would probably be worth a lot of money in the future. The couple used the land to farm a
number of vegetables including zucchini, pumpkin and turnips. Tony would transport the vegetables to the market where he sold the produce to the various stalls who
would then on sell the goods to the public.
In 1987 Tony decided to start farming pigs and sought council approval for the erection of a piggery on their property in Blacktown. The piggery was approved and with the help of his wife and children Tony successfully managed both his market garden and piggery.
To the couples dismay the property and surrounding areas had been re-zoned for residential development in 1990. Tony and Carmen enjoyed the rural life and
continued to farm the land. By 1998 the farm was surrounded by high density residential housing and council was consistently investigating complaints about thestench which came from the piggery. Due to complaints Tony and Carmen were forced to close their business in 2000. After spending $200,000 for removal of thepiggery and remediation of the land around it, in 2004, the couple reluctantly sold the property to a land developer for $5,000,000.
 

Required: What are the income tax consequences of the sale of Tony and Carmen Galea’s land? Discuss.

This Taxation Assignment has been solved by our Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.