Assignments Instructions and Requirements

Question 1

Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikitas usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges. For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometres in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs.

Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question

Identification of material facts (issues) regarding fringe benefits provided to Nikita.

Identification and analysis of legal issues / legal question and relevant taxation law in regards to fringe benefits (e.g. FBTAA 1986).

Thorough application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Perishers case.

Accurate conclusion of the FBT calculation. Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

QUESTION 2

Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets:

1. Antique Painting that was given to Taryn by her father 5 years ago. Taryns father bought it on 20 August 1984 for $2,500. Taryn sold it on 1st June 2020 for $25,000

2. Taryn sold her car (Toyota Corolla) for the amount of $12,000 on 20th May 2020, she bought on 1st January 2015 for the amount of $20,000

3. Taryn sold her Harry Potters collection for the amount of $1,500 on 4th January 2020, she bought it second hand on 10th October 2018 for $350.

4. Taryn sold her gold necklace for $2,000 on 20th March 2020, she bought it for $1,200 on 8th August 2018

5. Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500

Advise the Capital Gain Tax Consequences for the above transactions, please have a look at the matrix below on how to answer the question.

Identification of material facts on regard to each case

Identification and analysis of legal issues / legal question and relevant taxation law for each case.

Thorough application of ITAA 1997 to material facts.

Accurate conclusions are reached from each case. Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.