TLAW603 - Polyfoam Pty Ltd Case Study - Law Assignment Help

Assignment Task :

QUESTION 1 (TLAW603 )

Polyfoam Pty Ltd is a medium-sized company, located in the outer eastern suburbs of Melbourne, which imports and exports foam products. It is aware that the GST legislation may have a dramatic effect on the running of its business operations. Polyfoam is aiming to ensure that the impact of GST is minimised. 

Accordingly, the managing director of the company seeks advice concerning the possible GST implications of certain facts and transactions. She is also interested in any strategies you can suggest helping overcome any potential problems. 

The company’s current GST turnover is $7,000 per month and is projected to be $10,000 per month in the coming year. 

Goods to the value of $20,000 were imported, excluding freight and insurance charges of $5,000 and customs duty of $2,000. The managing director intends to use $1,000 worth of the goods for domestic purposes around her home. 

The company recently took out a loan from ATP Finance Ltd to fund the purchase of some new equipment and machinery. At the same time Polyfoam asked ATP to open a credit card facility for the business. 

Exported goods to the value of $10,000 were invoiced on the 1 October 2018 and paid on 31 October 2018. However, the actual export took place on 20 November 2018. Some of the goods Polyfoam has exported have been re-imported back into Australia. 

The Accounts Department of the company has several concerns. The company accounts for income tax on an accrual basis and is unsure whether this method can be maintained for the GST. Also, the invoicing procedure for GST is unclear. 

Accounts are aware of the Business Activity Statement (BAS) but are unsure what must be recorded in it and how frequently. The managing director is interested in any available strategies to help overcome potential cash flow problems. 

Advise Polyfoam on the above matters, supporting your advice with reference to the GST legislation where appropriate. 

QUESTION 2 

On 10 August 1985, Jonathan Mathew Manus inherited $1 300,000 in cash from the estate of his late paternal grandmother, Dame Judy Joanna Manus. Jonathan M. Manus used his inheritance to acquire the following assets: 

• a three-bedroom apartment in Sydney costing $ 500,000, which Manus subsequently used for the duration of the ownership as his home. Stamp duty of $23,750 was paid on 15 February 1986. The transfer costs and conveyancer’s fees, which totalled $ 2,500, were paid on completion, including the real estate agent’s fee of $20,000. Contracts were exchanged on 25 November 1985. Completion occurred on 20 April 1986. On taking possession of the property on 1 May 1986, Manus installed new carpets at a cost of $1,500 and painted the interior of the apartment at a cost of $1,800. Council rates cost $1,168 in total for the first year of ownership (due on the 31 August of each year of ownership), and thereafter rates increased each year by 2%, compounded monthly. 

• an immaculately restored early model MG sports car for $30,000 on 1st March 2000. 

• 20,000 ordinary shares in BRZ Ltd for $52,000 on the 1st September 1985. In March 1998, this company declared a 1 for 10 bonus issue payable to all shareholders from the company’s asset revaluation reserve. The paid-up value of each bonus share was $1 per share and its market value $3 per share. BRZ Ltd did not transfer any funds to the share capital account, and 

• a Georgian lamp for $20, 000 (over a 100-years old) on 1 January 1996. 

This TLAW603: Law 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.