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My assignment is on due today, please help. Billie Bob Billington is considering purchasing a second warehouse on a separate piece of land in New
My assignment is on due today, please help.
Billie Bob Billington is considering purchasing a second warehouse on a separate piece of land in New South Wales (NSW), costing a total of $880 000, for the purpose of storing his goods, which form part of his stock in trade in his retail business. Alternatively, Billie is considering adding 3 extra, large, rooms on to his house, and using those rooms to store the goods for his retail business. His house is also located in NSW, and is currently valued at $2 500 000.
QUESTION 1 (25 marks) AusCo, an Australian company instructs Mr Liang, a Chinese lawyer, who is located in China, to provide them with a report on various aspects of the consumer law in China. AusCo is situated in Australia. AusCo requires the information for their manufacturing business, which is operated exclusively in Australia. AusCo manufactures robotic kangaroos. AusCo is considering exporting its robots to China, as the Australian market is completely saturated. Mr Liang researches and drafts the report in China, and then forwards it to AusCo in Australia. Mr Liang charges AusCo a professional fee for the report. Required: a. Briefly consider whether or not there is a taxable supply by Mr Liang for Australian GST purposes? b. Would your answer to question (a) above, change, if Mr Liang (located in China) merely gives the information over the telephone to AusCo (located in Australia) in a conference call, as the information is already in Mr Liang's possession? c. AusCo (an Australian company, located in Australia) now applies for a loan from ABC bank (also located in Australia). ABC bank instructs Mr Liang to provide a written report to the bank on consumer law in China, for the purposes of assessing the above loan application. Mr Liang (who is based in China) researches and drafts the report in China for ABC Bank. Mr Liang then forwards it to ABC Bank in Australia. Mr Liang invoices ABC Bank for the fee. Briefly consider whether or not there is now a taxable supply by Mr Liang for Australian GST purposes? Note: You are required to set out your reasons for your answers in the above question, including brief references to any relevant legislation, case law, and tax rulings. QUESTION 2 (25 marks) Billie Bob Billington is considering purchasing a second warehouse on a separate piece of land in New South Wales (NSW), costing a total of $880 000, for the purpose of storing his goods, which form part of his stock in trade in his retail business. Alternatively, Billie is considering adding 3 extra, large, rooms on to his house, and using those rooms to store the goods for his retail business. His house is also located in NSW, and is currently valued at $2 500 000. Required: Advise Billie Bob Billington on the advantages and disadvantages of the two proposals that are currently under consideration, by critically taking into account any tax implications that are associated with the different proposals. Note: You are required to set out your reasons for your answers in the above question, including brief references to any relevant legislation, case law, and tax rulingsStep by Step Solution
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